Vietcap Securities JSC (coded VCI) has just announced a resolution of its Board of Directors to approve a plan to issue 143.6 million private placement shares, equivalent to 25% of the circulating shares, at VND 28,000/share. The expected proceeds amount to over VND 4,020 billion, which will be used to supplement capital for margin lending (VND 3,523 billion) and proprietary trading (VND 499 billion).
The list of expected investors in this offering includes 66 individuals and organizations. Notable participants are leading foreign funds in the Vietnamese stock market, including Dragon Capital, Pyn Elite Fund, and KIM Vietnam. Additionally, Prudential Vietnam has also registered to buy shares in this offering by Vietcap.
Pyn Elite Fund, a foreign fund from Finland, registered to purchase the largest volume of 21.5 million shares (15% of the total offering), equivalent to a 2.99% stake post-issuance. Several other funds also participated in this issuance with significant volumes, such as Apolo Asia Fund (12.7 million shares), ACM Global Fund (8.5 million shares), VEIL (7.5 million shares), Amersham Industries Limited (6.8 million shares), and DC Developing Markets Strategies Public Limited Company (5 million shares), to name a few.
Alongside these institutional investors, several individuals also registered to buy large volumes in Vietcap’s private placement. Some notable participants include Huynh Ngoc Thuong (6.5 million shares), Nguyen Tan Minh (6 million shares), Nguyen Yen Linh (5 million shares), and Luu Cong Toai (4.9 million shares). Based on the offering price, these individuals will need to spend hundreds of billions of VND.
The offering is expected to be implemented in 2024 and the first quarter of 2025. The privately placed shares will be subject to a one-year lock-up period. Previously, Vietcap had completed a bonus issue to increase its charter capital from owner equity, issuing 132.6 million bonus shares (a 30% ratio). The company’s chartered capital currently stands at VND 5,745 billion.
In the market, VCI shares are trading around VND 36,100/share (as of the morning session on September 27), up nearly 11% since the beginning of the year. Thus, the private placement price is approximately 22% lower than the market price.
Regarding its 2024 business plan, Vietcap sets targets of VND 2,511 billion in operating revenue and VND 700 billion in pre-tax profit, increasing by 2% and 23%, respectively, compared to the 2023 performance. The Board of Directors of VCI proposed the 2024 plan based on the expectation that the global and Vietnamese macro-economy will remain volatile and complex, with the VN-Index forecasted to fluctuate around 1,300 points by the end of 2024.
For the first six months of the year, the company reported a surge in operating revenue of 72% to over VND 1,722 billion. Vietcap’s pre-tax profit reached VND 571 billion, 2.7 times higher than the same period last year. Thus, the company has accomplished 69% of its revenue target and 82% of its profit goal.
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