The Ultimate Shareholder Value: MBS Investors to Acquire 68.7 Million Shares at a Whopping 63% Discount!

MB Securities JSC (MBS) announces the resolution to implement the issuance of pre-emptive rights to existing shareholders to increase its charter capital. This plan was approved at the 2025 Annual General Meeting of Shareholders.

Accordingly, MBS plans to offer 68.7 million shares at a price of VND 10,000/share. The entitlement ratio is 100:12 (for every 100 shares held, a shareholder is entitled to purchase 12 new shares). The offering is expected to take place in 2025.

With the expected proceeds of VND 687.3 billion from the offering, MBS will use VND 150 billion to supplement capital for proprietary trading and underwriting, and VND 537 billion for margin lending.

If the offering is completed, MBS will increase its number of outstanding shares to 641,520,497 units, equivalent to a charter capital of VND 6,415.2 billion.

As of the opening of the morning session on May 13, MBS shares are trading around VND 27,500/share. Thus, shareholders will be able to purchase shares in this offering at a price 63% lower than the market price.

In terms of business results for the first quarter of 2025, MBS recorded operating revenue of VND 669 billion, a slight decrease of 1% compared to the same period last year.

A shift in the revenue structure across business segments is evident. Specifically, brokerage revenue decreased by 28% to nearly VND 133 billion. Likewise, profits from financial assets measured at fair value through profit or loss (FVTPL) also decreased by approximately 10%, amounting to VND 126 billion.

In contrast, holdings to maturity (HTM) investments increased by 60%, reaching nearly VND 69 billion. Profits from available-for-sale financial assets (AFS) rose by 32%, totaling VND 40 billion. Income from loans and receivables amounted to VND 277 billion, a 7% increase.

During this period, MBS successfully reduced operating expenses by nearly 60%, totaling VND 108 billion, mainly due to decreased losses in FVTPL financial assets and brokerage expenses.

Consequently, MBS reported a pre-tax profit of nearly VND 339 billion and a post-tax profit of VND 270 billion for the first quarter of 2025, representing year-over-year increases of 48% and 47%, respectively.

As of March 31, 2025, MBS’s total assets stood at VND 22,409 billion, an increase of approximately VND 277 billion over the past three months.

In the asset structure, loans accounted for the largest proportion, amounting to nearly VND 11,442 billion, an 11% increase from the beginning of the year.

MBS’s FVTPL portfolio expanded by 30% over the quarter to VND 2,565 billion. The company increased its holdings in other marketable securities by 55% to VND 1,162 billion. Investments in stocks surged by 2.7 times to VND 447 billion, while bond holdings exceeded VND 900 billion. In contrast, AFS assets decreased by 43%, totaling VND 1,527 billion.

In terms of capital structure, total liabilities amounted to VND 15,230 billion. MBS had short-term financial borrowings of VND 13,112 billion and long-term bond debt of VND 1,061 billion.