Nhat Viet Securities (VFS) Boosts Charter Capital to 1,540 Billion VND After Stock Dividend

Overview

Nhat Viet Securities (VFS) has completed a 10:1 stock dividend issuance, raising its charter capital to nearly 1,540 billion VND. The company also announced plans for a rights offering of 139.9 million shares at 10,000 VND each to raise 1,399 billion VND, primarily for proprietary trading and margin lending. This capital increase is part of VFS’s growth strategy to expand its securities business.

Key Facts

• VFS completed distribution of nearly 14 million shares as a 10:1 stock dividend on May 27, 2026.
• Charter capital increased to nearly 1,540 billion VND after the stock dividend.
• The company plans a rights offering of 139.9 million shares at 10,000 VND per share to raise 1,399 billion VND.
• Proceeds from the rights offering will be split equally: 50% for proprietary trading and 50% for margin lending.
• If the rights offering is completed, VFS’s charter capital would rise to nearly 2,939 billion VND.
• For 2026, VFS targets total revenue of 609 billion VND and pre-tax profit of 204.75 billion VND, up 19% and 10% year-on-year respectively.
• In Q1 2026, VFS reported operating revenue of over 130 billion VND (+40% YoY) but pre-tax profit fell 2% to nearly 32 billion VND due to higher costs.

What Happened

Nhat Viet Securities (VFS) announced the completion of a stock dividend issuance on May 27, 2026, distributing nearly 14 million shares to existing shareholders at a ratio of 10:1. The source of the issuance was the company’s retained earnings after tax as per the audited 2025 financial statements. The new shares are not subject to transfer restrictions, and shares under restriction still received the dividend.

Additionally, VFS has a plan to raise further capital through a rights offering of 139.9 million shares at 10,000 VND per share, expected to raise 1,399 billion VND. The offering is targeted for 2026-2027, after the stock dividend completion. The funds will be used to bolster proprietary trading and margin lending activities. The company’s 2026 business plan targets revenue of 609 billion VND and pre-tax profit of 204.75 billion VND, with margin and proprietary trading as key drivers.

Market Context

VFS shares closed at 11,600 VND on June 3, 2026, down 0.85% with a volume of 2.94 million shares. The stock has been trading on HOSE. The capital increase comes amid a competitive securities sector where firms are raising capital to capture market share in margin lending and proprietary trading. VFS’s planned rights offering at a discount to the current market price may attract investor interest, but the dilutive effect is a consideration.

Strategic Significance

The capital raise positions VFS to expand its core revenue drivers: margin lending and proprietary trading, which together account for 82% of projected 2026 revenue. The move also supports the company’s entry into derivatives trading in 2026, a strategic diversification to offer hedging and investment solutions. By increasing charter capital to nearly 2,939 billion VND, VFS aims to strengthen its competitive position among mid-tier securities firms in Vietnam.

What to Watch

• Completion timeline and subscription rate for the rights offering (expected 2026-2027).
• Q2 2026 earnings report to assess margin and proprietary trading revenue growth.
• Regulatory approval and launch of derivatives trading operations.
• Impact of capital dilution on earnings per share and return on equity.
• Competitor capital-raising activities and market share shifts in margin lending.