On May 16, the State Securities Commission (SSC) issued a Certificate of Registration for Public Offering of Shares to VNDIRECT Securities JSC (HM: VND), with the implementation period within 90 days from the date of the certificate.
Immediately after that, VNDirect's Board of Directors approved the record date for shareholders to exercise the right to purchase additional issued shares and receive 2022 dividends in shares on May 30, which is the ex-rights trading date of May 29. The share issuance plan was approved by the company at the 2023 annual shareholders' meeting in the middle of last year, so the process of applying for a license until approval took nearly a year to complete.
According to the plan, VNDirect plans to offer nearly 244 million shares to existing shareholders at a ratio of 5:1, meaning that shareholders owning every 5 shares will have the right to buy 1 new share. The registration and payment period for buying shares is from June 6 to July 3.
The offering price is VND10,000/share, equivalent to the expected amount of VND2,437 billion. The company plans to use 40% of new capital to supplement margin lending activities, 20% of money to invest in valuable papers, 20% to underwrite securities issuance and 20% for warrant issuance and distribution activities.
The company will also pay stock dividends at a rate of 5%, equivalent to issuing nearly 61 million new shares. The source of capital for implementation is taken from undistributed profit after tax in the audited separate financial statements for 2022. Thus, the total number of shares expected to be offered and issued in this round is 304.5 million shares. If fully issued, VNDirect will increase its charter capital from VND 12,178 billion to nearly VND 15,223 billion, possibly surpassing SSI (HM:SSI) to lead the industry in terms of capital scale (SSI is also applying for a license to offer more than 453 million shares).
According to the current shareholder structure, IPA Investment Group is still the largest investor holding 25.8% of VNDirect's capital. In addition, Chairman of the Board of Directors Pham Minh Huong also directly owns 2.95% of the company's shares. In fact, in addition to the two above-mentioned plans, VNDirect's 2023 Annual General Meeting of Shareholders also approved a plan to privately offer nearly 244 million shares to professional securities investors, and at the same time plans to offer more than 24 million ESOP shares and issue more than 12 million bonus shares to employees.
If all plans are completed, the company will issue a total of nearly 585 million new shares, increasing VNDirect's charter capital from VND12,178 billion to over VND18,000 billion. The company has yet to hold its 2024 Annual General Meeting of Shareholders. The last registration date to attend the meeting was set on May 16.
According to the parent company's 2024 business plan, VNDirect sets a target of after-tax profit increasing by 21% over the same period to VND2,525 billion. Total assets are expected to decrease by 41% to VND40,100 billion, but equity will increase by 27% to VND20,923 billion.
Source: Investing
