Since the beginning of the year, the stock has climbed an impressive 67% in value, with its market capitalization also rising to 17,450 billion VND. This momentum in MBS, and the broader brokerage sector, was spurred by the issuance of Circular 68/2024/TT-BTC, which officially permits securities companies to provide services allowing foreign institutional investors to place orders for securities without sufficient funds, effective November 2nd.
Many analysts view this development as a significant step forward in the progression of Vietnam’s stock market. The circular is expected to help Vietnam meet key requirements for an upgrade in market status. VNDirect Securities anticipates that Vietnam’s stock market will be classified as an Emerging Market by FTSE and MSCI in 2025 and 2026, respectively.
Should this upgrade materialize, investment funds that mirror these indices will allocate capital to Vietnam. The investment quantum will depend on each fund’s allocation strategy. Stocks that are expected to benefit the most are those with the highest weightings in the FTSE and MSCI indices.
Moreover, addressing this crucial bottleneck in the market upgrade process is anticipated to act as a catalyst to reverse the flow of foreign capital in Vietnam’s stock market. The VNDirect analysis team believes that the brokerage industry will benefit from serving a larger number of foreign institutional investors, resulting in increased revenue from brokerage services as liquidity improves.
Completion of the issuance of 109 million shares to existing shareholders
In a related development, MB Securities recently concluded its issuance of additional shares to existing shareholders. Specifically, MBS successfully issued 108.3 million shares out of the registered 109.4 million, at a ratio of 4:1 and a price of 10,000 VND per share. The remaining unallocated shares, totaling 1.15 million, were purchased by Military Commercial Joint Stock Bank (MB), the largest shareholder of MBS, holding nearly 80% of its capital.
Following this issuance, the number of outstanding shares increased to over 547 million, with a corresponding chartered capital of nearly 5.5 trillion VND. The company intends to utilize the proceeds for several strategic objectives: 50 billion VND will be invested in information technology systems; 450 billion VND will be allocated for proprietary trading and underwriting activities; and 594 billion VND will be added to the margin lending capital source.
In addition to the share offering to existing shareholders, MB Securities also plans to issue over 28.7 million shares in a private placement to professional securities investors. The offering price will be negotiated but will not be lower than the book value of 11,512 VND per share. MBS estimates to raise a minimum of 331 billion VND from this issuance, and these shares will be restricted from transfer for one year.
If both issuances are successful, the chartered capital of MB Securities is expected to increase to nearly 5.8 trillion VND.
In terms of business performance, for the first six months of the year, MBS recorded operating revenue of 1,557 billion VND, up 111% from the same period in 2023. PBT increased by 63% to 500 billion VND, with net profit reaching 399 billion VND.
The Dynamic Duo of Railway Stocks: Riding the Wave of the $70 Billion Mega-Project, HRT and SRT Merge to Create a Powerhouse
HRT and SRT stocks have soared exponentially since the beginning of the year and are hovering near historic highs.
Elevating Vietnamese Stocks: Awaiting the Close of the 8th of October Session in the U.S.
The prestigious international stock market index provider, FTSE Russell, has announced that Vietnam is poised for an upgrade to emerging market status. The highly anticipated decision will be revealed after the close of the US stock market on October 8th.
