Securities firms revive IPO plans as Vietnam market upgrade nears

Following a period of strong market volatility, the IPO landscape in the securities sector is gradually heating up again. Amid improving liquidity, preparations for a market upgrade and rising capital demand, companies are accelerating capital-raising plans, preparing for listings and repositioning their long-term development strategies.

Trinh Thanh Can, CEO of Kafi Securities, said the company was preparing for an IPO during 2026-2027.

“We are not overly focused on timing, but rather prioritise readiness in terms of quality before pursuing an IPO,” Can said.

According to him, Kafi aims to build a sustainable growth foundation before listing, including technological capabilities, risk management systems, large-scale operational capacity and a business model capable of cultivating long-term growth.

The securities sector is viewed as a direct beneficiary following a potential market upgrade

In line with its strategic direction, Kafi does not intend to operate under the traditional securities firm model, but instead aims to become an investment and wealth management platform leveraging technology and AI.

The management said the company is focusing on developing wealth management services, personalised investment solutions and AI application in data governance, risk management and customer experience optimisation.

In 2026, Kafi targets pre-tax profit of $42 million, up 129 per cent on-year. Total assets are projected to reach $1.4 billion, an increase of 34 per cent, as the company continues upscaling its operations.

Kafi has also approved a plan to issue 125 million shares to the public, equivalent to approximately 16.67 per cent of outstanding shares. Of the expected proceeds, 70 per cent will be allocated to margin lending activities and 30 per cent to proprietary trading operations.

In addition, Kafi plans to issue around 3.75 million shares under an employee stock ownership plan, aimed at retaining talent and strengthening long-term development resources.

Not only Kafi, LPBank Securities (LPBS) has also been in the spotlight after announcing plans to offer nearly 141.9 million shares to the public in the second quarter of 2026 at an expected price of $1.2 per share.

If completed, the company could raise approximately $170 million, significantly expanding its capital base while accelerating its strategy to become a next-generation investment bank in Vietnam.

Under the plan, LPBS expects to complete its listing on the Ho Chi Minh Stock Exchange within 30 days after the IPO, most likely in July 2026. If listing conditions are not favourable, the shares will instead be registered for trading on the unlisted public company market.

Following the IPO, LPBS’s charter capital is expected to surpass $563 million, while shareholders’ equity will approach $720 million. At that scale, LPBS could join the six largest securities firms by market capitalisation after listing.

Hoang Viet Anh, CEO of LPBS, said the company is targeting a next-generation investment banking model focused on delivering comprehensive wealth management solutions for mass-market clients.

“Our development strategy for 2026-2028 will focus on three major goals: becoming the securities firm with the industry’s leading profit growth rate, leading the market in digital channels and ranking among the Top 5 in return on equity,” Anh said.

The IPO wave among securities firms is returning strongly as the timeline for a market upgrade approaches and the financial sector enters a new growth cycle.

However, behind these multi-billion-dollar fundraising deals lies considerable pressure on post-listing share price performance, as the market faces the risk of supply saturation.

In reality, many stocks have experienced sharp corrections after listing, particularly when initial valuations reflected overly optimistic growth expectations.

For securities firms, this pressure is even more pronounced due to the sector’s cyclical nature and its heavy dependence on market liquidity.

The environment of rising interest rates and exchange-rate volatility in 2025 also placed significant pressure on investor sentiment. Higher capital costs made speculative cash flows more cautious, while the elevated valuations of many IPO stocks raised questions among investors about actual post-listing growth potential.

Nevertheless, post-IPO price pressure does not necessarily imply a negative long-term outlook for the securities sector. As the anticipated market upgrade draws nearer, securities firms are still viewed as direct beneficiaries if liquidity improves and foreign capital inflows return more strongly.

Global events hinder bank IPO plans Concerns over the lacklustre market have played a part in weakening investors’ appetite and could pose risks for Vietnamese banks going public this year.

Southeast Asian companies to accelerate IPO plans A number of Southeast Asian tech and consumer durables companies are mulling over applying for initial public offering (IPO) in latter 2020 while startups in Vietnam are looking at choppy waters with their IPO dreams.

Predicting outcome of VinFast IPO plans VinFast, the auto arm of Vingroup, has submitted documents for its first initial public offering on the Nasdaq. Kent Wong, legal committee chairman at the European Chamber of Commerce in Vietnam, discussed with VIR’s Luu Huong the feasibility and challenges of Vietnamese corporations when it comes to overseas listing.