The Ultimate Guide to Writing Compelling Copy: “Over 109 Million MBS Shares to be Offered at a Third of Market Price”

Based on the 2024 Annual General Meeting of Shareholders’ resolution, the MBS Board of Directors announces the issuance of shares to existing shareholders to increase its charter capital. The number of shares to be issued is over 109.4 million, corresponding to a ratio of 4:1 (for every 4 shares held, shareholders can buy 1 new share). These shares will be freely transferable.

The expected offering price is VND 10,000 per share, expected to raise over VND 1,094 billion. MBS plans to allocate VND 50 billion for investment in information technology system development, VND 450 billion for proprietary trading and underwriting activities, and VND 594 billion to supplement margin lending capital.

The offering is expected to take place in 2024, after obtaining the certificate of registration for public offering of shares from the State Securities Commission.

In addition to this capital increase plan, the MBS General Meeting of Shareholders also approved the issuance of over 28.7 million shares in a private placement to a maximum of 30 professional securities investors. These shares will be restricted from transfer for one year from the completion of the offering.

The offering price will be agreed upon but not lower than the book value (VND 11,512 per share), corresponding to a minimum proceeds of VND 331 billion to supplement business capital for activities such as margin lending…

To complete the above two plans, MBS needs to issue a total of over 138.1 million new shares, and its charter capital will increase from VND 4,377 billion to VND 5,758 billion.

MBS General Director Phan Anh

At the General Meeting of Shareholders held in late March 2024, MBS General Director Phan Anh acknowledged that the small scale of capital is one of the difficulties faced by the Company in conducting business activities and serving customers, along with intense competition among securities companies, as all are rushing to increase their capital.

“MBS is a subsidiary of MB Bank, so the Company’s capital increase is part of the Group’s overall strategy. We assure shareholders that they will see the Company with a new face every year,” said Mr. Phan Anh.

In terms of business results, in the first quarter of 2024, MBS’s operating revenue reached nearly VND 674 billion, more than doubling that of the same period last year, with positive results in most core activities. As a result, the Company’s pre-tax profit increased by 51% to VND 230 billion, fulfilling 25% of the year plan. Net profit was approximately VND 183 billion.

On the stock market, MBS shares are trading at a peak of VND 30,000 per share, doubling in one year and tripling the issuance price for shareholders. Average liquidity since the beginning of the year reached nearly 4.5 million shares/session.

Te Manh