Viet Capital Securities to be listed this Friday

Viet Capital Securities will make its public debut on July 7

Approximately 103 million shares will be listed on the bourse, with prices starting at VND48,000 ($2.11) per share. The band for share price fluctuations on the first day of trading is 20 per cent.

This means that Viet Capital Securities (VCSC) will be capitalised at VND4.95 trillion ($217 million) on Friday, July 7, if all goes according to plan.

Deputy CEO Dinh Quang Hoan is positive that the firm’s ticker will hit the ceiling on the first day of trading due to overwhelming demand from investors.

VCSC recently held a private placement for foreign investors who altogether bought 10 per cent of the shares, to raise VND270 billion ($11.8 million) for the brokerage. At least 28 overseas funds have joined the placement, hailing from Singapore, Thailand, the US, Europe, and Japan, together with Vietnamese names, such as Dragon Capital, Vietnam Holding, and PXP.

Following this private sale, VCSC still keeps its foreign ownership cap at 49 per cent and has no intention of abolishing this limit in the next two years. There are also no plans to find a strategic investor at the moment, according to deputy CEO Hoan.

The firm celebrated its 10^th anniversary this year, with the top position in investment banking and brokerage services for foreign institutional clients. Its compound annual growth rate is 27 per cent and returns-on-equity stands at 32 per cent.

In 2016, the brokerage earned VND894 billion ($39.3 million) in revenue and VND338 billion ($14.8 million) in post-tax profit. It aims to boost this revenue by 22 per cent in 2017, while profit is expected to grow by 30 per cent.

To reach this target, VCSC strives to maintain its prominence in investment banking and foreign institutional services, as well as seeks undervalued private firms for its own investments.

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