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Banking & Finance

Maritime Securities Incorporation to increase charter capital after listing

Released at: 15:20, 06/07/2016

Maritime Securities Incorporation to increase charter capital after listing

Photo: Duc Anh

Additional stock to be issued following expected Q3 listing.

by Hung Nguyen

Maritime Securities Incorporation (MSI) will double its charter capital via issuing additional stock after listing on the Hanoi Stock Exchange (HNX).

Charter capital will increase to VND600 billion ($26.80 million) from the current VND300 billion ($13.44 million), according to Mr. Mac Quang Huy, CEO of MSI.

The firm will conduct the plan adopted at the 2016 Annual General Meeting by issuing additional stock to existing shareholders and strategic shareholders and introducing an employee stock ownership plan (ESOP). “The plan will be flexible and depend on the market situation and the company’s circumstances at that time,” Mr. Huy told VET.

The timing of the IPO is yet to be set but Mr. Huy said that MSI has submitted listing documents to HNX and registered the security code MSI with the Vietnam Securities Depository (VSD). After HNX approves the listing MSI will determine the timing of the IPO, which is expected to be in the third quarter. “We also have a plan to issue corporate bond to mobilize capital to meet expansion needs as the market develops,” Mr. Huy added.

According to the company’s financial report, as at April 30 the booking value of MSI shares was VND15,855 ($0.71). The offering price will be decided based on comparisons with other listed securities firms. According to Mr. Huy, ratios such as the price-to-book ratio (P/B) and price-earnings ratio (P/E) of other securities firms of similar size will be considered for use as a benchmark in determining the offering price of MSI to attract investors. The P/B of current listed securities firms is from 1 to 1.8.

There are now 27 securities firms listed on the two Vietnamese stock markets, of which eight are listed on HSX and 19 on HNX. SSI has the leading market cap on HSX, with VND10.43 trillion ($467.57 million) and a P/B of 1.57, followed by PAN with VND4.33 trillion ($194.11 million) and 1.56 and HCM with VND4.2 trillion ($188.28 million) and 1.81. On HNX, VND has the leading market cap, of VND1.98 trillion ($88.76 million) and a P/B of 1.01, followed by KLS with VND1.95 trillion ($87.41 million) and 0.86.

In 2015 MSI recorded revenue of VND231.5 billion ($10.37 million), in which brokerage activities contributed VND44.2 billion ($1.98 million), investment VND81 billion ($3.63 million), underwriting activities VND16.3 billion ($730,729), consultancy activities VND14.6 billion ($654,518), and other activities the remainder.

After-tax profit was VND45 billion ($2.01 million), some VND13 billion ($582,790) lower than 2014’s result.

MSI was previously Standard Securities, licensed in 2008, before securing Maritime Bank as a strategic shareholder in 2011 and changing its name to Maritime Securities Incorporation.

Mr. Huy said that the purpose of the listing is to mobilize capital in the stock market and bolster transparency. “We are fully prepared and are seeking strategic shareholders and other funds to accompany MSI on its journey to sustainable development,” he added.

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