DNSE Securities announces IPO

January 03, 2024 | 16:44
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DNSE Securities announced on January 2 that it is to sell 30 million shares at its initial public offering (IPO) to raise VND900 billion ($36.95 million), marking the first-ever IPO of a tech-securities firm in Vietnam and the first of any securities firm in five years.
DNSE Securities announces IPO

The State Securities Commission issued an IPO licence to DNSE Securities on December 27, allowing DNSE to sell the shares with a starting price of VND30,000 ($1.23) apiece. Each investor can register online to buy a minimum of 1,000 shares and a maximum of 16,499,900 shares. The firm is expected to raise at least $36.95 million from the move.

Dai Nam Securities was founded in 2007 and in 2021, it became a member company of Encapital Financial Technology JSC and changed its name to DNSE Securities. DNSE has since transformed itself into the first tech securities firm on the Vietnamese market and has unveiled a slew of pioneering digital securities products.

The company has grown from a small traditional outfit into one of the top 10 securities firms in Vietnam, with the largest charter capital in 2022 at VND3 trillion ($132.2 million). Once the IPO is successful, DNSE is expected to increase its charter capital to VND3.3 trillion ($135.5 million).

With its innovative products and solutions, some the first of their kind for Vietnam's securities market, DNSE is also a technology pioneer.

'Margin Deal' is a pioneering system that customises management and lending for each transaction. 'Margin Deal' offers flexibility in interest rates while displaying profits, losses, tax, and fees clearly and transparently, minimising the risk of cross-selling.

Since the launch of the system in late 2022, DNSE has recorded consistent improvement in margin loans, contributing to upbeat business growth during a tough period. As a result, DNSE's after-tax profit climbed by 334 per cent in the first nine months of 2023, more than quadruple the amount on-year.

DNSE is also a pioneer in deploying 'virtual brokers' to assist in customer care. DNSE's 'AI Broker' can analyse the market, provide fundamental or technical analysis of stock codes, and advise on potential stocks according to objective indicators on the Entrade X by DNSE trading platform. The chatbot has answered tens of thousands of questions from investors since its trial launch.

DNSE Securities announces IPO

DNSE has achieved many breakthrough results since its transition to a tech securities firm with faster processing and updating speeds. To tap into a larger customer base, DNSE is also working with financial, training, data analysis, and banking partners to create a one-touch experience, covering market knowledge, data analysis, and stock trading all together on the same platform.

Staying ahead of global trends and investor needs, the company has also partnered with ZaloPay e-wallet. It has also unveiled its first securities account for the e-wallet, allowing stock investments starting with just one share. The move has enabled DNSE to pull in over 350,000 new accounts and rank first in new account openings.

Nguyen Hoang Giang, chairman of the Board of Directors of DNSE, said, "We are steadfast in pursuing the goal of becoming the leading tech-securities company in Vietnam by making bold moves with flexible and creative strategies. Through this IPO, DNSE will have more resources to improve capital capacity, invest more in technology, and realise the company's long-term strategy."

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By Binh Minh

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