LPBS Set to Boost Capital to Nearly VND 13 Trillion

On September 15th, the Board of Directors of LPBank Securities JSC (LPBS) passed a resolution to offer up to 878 million shares to existing shareholders. This move is expected to increase the company's chartered capital to VND 12,668 billion, a 3.3-fold increase from its current level. The majority of the proceeds from the offering will be allocated to investments in bonds, deposit certificates, and margin lending.

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Specifically, the maximum expected offering is 878 million shares, corresponding to a ratio of 1,000:2,258.23 (shareholders owning 1,000 shares will receive 1,000 purchase rights, and 1,000 rights can purchase 2,258 new shares). If successful, the company’s capital will increase to 12,668 billion VND.

At an offering price of 10,000 VND per share, LPBS could raise 8,780 billion VND. Of this, 60% will be allocated to investing in securities on the bond market and deposit certificates; 30% will supplement capital for margin lending activities; and 10% will support underwriting services and other operations. The capital utilization is planned from 2025 to the end of 2026.

According to the plan, shareholders can transfer purchase rights from September 15 to October 10. Registration and payment for purchases will take place from September 15 to October 15. Previously, the company finalized the shareholder list on September 8.

In 2024, LPBS successfully offered 363.8 million shares to existing shareholders, increasing capital to 3,888 billion VND, concluding on April 16, 2024. The entire raised amount of over 3.6 trillion VND has been disbursed, including 2,938 billion VND to supplement capital for lending, margin trading, advance payments for securities sales, and other services; 500 billion VND for proprietary trading; and 200 billion VND to expand branch networks across provinces and cities.

This event was the primary driver behind LPBS’s surge in revenue and profit since then.

Source: Author’s compilation

In the first half of 2025, LPBS generated nearly 546 billion VND in operating revenue, nearly 18 times higher than the same period last year. Several business segments saw robust growth, notably profits from financial assets measured at fair value through profit or loss (FVTPL), held-to-maturity (HTM) investments, and lending and receivables.

After deducting expenses, primarily over 87 billion VND in operating costs (mostly for brokerage activities) and nearly 118 billion VND in interest expenses, LPBS achieved a net profit of nearly 247 billion VND, almost 19 times higher than the same period.

For 2025, LPBS set a revenue target of 1,015 billion VND and pre-tax profit of 503 billion VND, both over five times the 2024 results. Key implementation solutions include maintaining and expanding brokerage, margin trading, proprietary trading, and investment banking, as well as increasing charter capital to broaden operations, enhance financial capacity, and improve competitiveness.

With over 309 billion VND in pre-tax profit in the first half of the year, LPBS has achieved 61% of its annual profit plan.

Source: Author’s compilation

Huy Khải

– 15:43 17/09/2025

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