On December 4, 2024, Ho Chi Minh City Securities Corporation (HSC, HOSE: HCM) successfully held the Extraordinary General Meeting of Shareholders (EGM), where they approved the plan to issue shares to existing shareholders in order to increase its charter capital by VND3,600 billion.

EGM_1The Presiding Board Members conducted at the EGM

Accordingly, HSC will increase its charter capital by issuing shares to existing shareholders at a 50% offering rate, equivalent to a subscription ratio of 2:1. Specifically, shareholders who own 1 share on the record date will receive 1 right to purchase, and shareholders who hold 2 rights to purchase will be able to buy an additional new share at the offering price of VND 10,000 per share. The offering is expected to take place in 2025. If successful, the issuance will raise VND 3,600 billion, increasing the charter capital from VND 7,200 billion to VND10,800 billion.

The funds raised will be allocated for margin lending and proprietary trading activities. Specifically, around 70% (equivalent to VND2,500 billion) will be used to expand margin lending operations, and the remaining 30% (equivalent to VND1,100 billion) will be used for proprietary trading activities.

This capital increase will enhance HSC's financial capacity and strengthen its competitive position in the market. With the new capital, the company will be able to expand margin lending operations, increase the NPF for foreign institutional investors, and participate more actively in capital arrangement activities in investment banking transactions. A strong capital foundation will also enable the company to effectively develop its proprietary trading strategy, remain flexible to market changes, and drive profit growth in the future.

According to the report presented at the meeting, HSC is expected to achieve positive business results in 2024. The company forecasts a revenue of VND3,287 billion for 2024, a 46% increase compared to 2023; pre-tax profit of VND1,303 billion, increased 55% YoY. Return on equity (ROE) is expected to reach 11.2%, higher than the 8.3% in the previous year, and earnings per share (EPS) is estimated to be VND1,771, up 20%YoY.

EGM_2CEO Trinh Hoai Giang presented at the EGM

HSC's CEO shared: In the near future, HSC aims to continue to lead in connecting foreign investment flows into the Vietnamese capital market, strengthening the diversification of products based on the philosophy of "Seeing through the customer lens' to improve customer experience". The company is currently implementing technological solutions in management and operations to optimize costs and improve employee productivity. In addition, HSC is also focusing on developing human resources, enhancing the skills, flexibility, and capacity of the workforce to better meet the demands of the increasingly volatile stock market.

With a clear strategic direction, HSC is confident it will continue to be the top choice for investors and maintain its position as a trusted financial institution in the Vietnamese capital market.