AsemconnectVietnam - After completing the ESOP issuance and increasing capital by 30% from equity, VCI will offer a maximum of 20% of new charter capital, through the form of private share offering to professional/strategy investors.

According to the newly announced shareholder meeting document of Vietcap Securities Joint Stock Company (VCI), some business activities of the securities company such as lending for margin trading, investment... are subject to restrictions on owners capital -based limits of the company, therefore to continue to maintain the Company's growth momentum and market share, expanding charter capital is necessary to prepare for the next growth stages of the market.
Accordingly, the Company will issue ESOP shares in order, issue capital increases from equity sources and issue individual shares to strategic partners.
Specifically, the Company plans to issue 4.4 million ESOP shares (equivalent to 1% of charter capital), with an issuance price of 12,000 VND/share. Total proceeds after issuing ESOP are expected to be used to supplement the Company's working capital and reduce debt.
After completing the issuance of ESOP, the expected charter capital is VND4,419 billion, the Company will issue an additional 132.57 million shares to increase share capital from owner's equity, at a rate of 30%. After issuance, the expected charter capital is VND5,744.7 billion.
The Company plans to offer 143.63 million shares to professional/strategic investors with the principle of determining the offering price not lower than the Company's book value as of December 31, 2023, which is 16,849 VND/share (based on the 2023 audited financial report). Authorize the Board of Directors to decide on the basis of the Principles for determining the Offering Price mentioned above. Shares are restricted from transfer for at least 1 year from the date of completion of the offering.
If successful, VCI's total outstanding shares are 718.1 million shares, charter capital is VND7,181 billion.
Based on the book value as of December 31, 2023, the Company's book value is 16,849 VND/share, the total amount expected to be received from the private share offering is at least 2,420 billion VND. Expected disbursement of VND2,120 billion for margin lending activities, VND300 billion for self-trading activities. Expected implementation time is 2024 and the first quarter of 2025.
In 2024, VCI plans operating revenue of VND2,511 billion and pre-tax profit of VND700 billion, dividend 5-10%.
This plan is based on the basis that the world's and Vietnam's macroeconomy is expected to still have many variables and continue to be complicated, and the VN-Index is forecast to fluctuate around 1,300 points at the end of the year.
In 2024, VCI forecasts that the Investment Banking (IB) segment is expected to be better thanks to interest rates tending to decrease; business valuations have entered the attractive zone, which will be one of the factors helping the capital market in the future. 2024 is expected to be better than 2023. In the individual brokerage segment, VCI continues to focus on developing the retail brokerage field for individual investors. The company's strategy is customer-centric and focuses on developing service quality for customers rather than the strategy of lowering costs.
The planned revenue number only increased slightly, but the profit target increased by 22.8% compared to 2023 performance.
In 2023, the Company's mobilized capital costs will increase, affecting the NIM of margin activities, and at the same time, the stock market situation in 2023 will be less positive, leading to unrealized revenue from investment activities and recorded during the year. At the end of fiscal year 2023, VCI recorded pre-tax profit of VND570 billion, completing 57% of the plan.
Leading in the IB segment, in 2023, VCI is generally affected by the quiet context of capital mobilization activities, whereby IPO, capital mobilization or M&A activities take place more slowly than previous years. Accordingly, during the year, VCI did not record any notable deals.
According to VCI, the company is in the process of implementing a number of consulting deals. Revenue and profits from these unfinished deals have not been fully recorded in 2023 business results.
With the brokerage segment, in 2023, VCI will have the 8th market share on HOSE with 4.47% market share. Total brokerage revenue for the year reached VND535 billion, of which domestic brokerage revenue reached about VND275 billion (down from VND458 billion in 2022), average brokerage revenue per capita also decreased compared to the year 2022 due to a decrease in general market liquidity, promotional fees applied to customers as well as an increase in the number of brokerage personnel compared to 2022.
VCI leads the foreign brokerage market share with 25% market share in 2023. This is the 4th consecutive year the company has maintained the leading foreign brokerage market share in the stock market.
The company continues to have a remuneration report for independent members of the Board of Directors of 20 million VND/month/person, non-independent members of the Board of Directors do not receive remuneration.
At the same time, the VCI Board of Directors also submitted a proposal to dismiss and elect an additional member of the Board of Directors for the 2021-2026 term, replacing Mr. Nguyen Hoang Bao who had submitted an application to resign from the position of member of the Board of Directors for personal reasons.
N.Nga
Source: VITIC/Tinnhanhchungkhoan