Securities firms race to raise capital ahead of market upgrade

On September 15, LPBank Securities JSC (LPBS) issued a resolution announcing plans to offer up to 878 million shares to existing shareholders, with subscriptions open from September 15 to October 15.

If fully subscribed, the firm's charter capital will soar from $155.5 million to approximately $506.7 million, marking a staggering leap for a company that only held $10 million in capital at the beginning of 2023.

After issuing over 363 million shares in early 2024, LPBS had scaled up its capital to $155.5 million. With the new plan, the company is set to join Vietnam's largest securities firms, increasing its charter capital 50-fold in just two years.

Tien Phong Securities JSC (TPS) is also moving forward, with shareholders approving the issuance of 287.9 ​​million shares to TPBank at $0.5 per share, increasing its capital from $134.4 million to nearly $249.6 million.

Elsewhere, KAFI Securities JSC has successfully raised $100 million by issuing 250 million shares, boosting its capital base from $200 million to $300 million.

The firm aims to list on the unlisted public company market (UPCoM) in the fourth quarter of this year and further bolster its capital to $600 million, placing it among the industry's biggest players.

Industry heavyweights are also rushing their capital plans.

SSI Securities has scheduled an extraordinary general meeting for September 25 to discuss issuing 415.6 million shares at $0.6 apiece. A successful sale would raise SSI's charter capital from $831 million to nearly $997.4 million, solidifying its leading position.

Upcoming IPOs also promise to reshape the market landscape. Along with this, VPBank Securities JSC (VPBankS) plans to issue up to 375 million shares, increasing capital from $600 million to approximately $750 million.

Meanwhile, VPS Securities JSC will issue 710 million bonus shares, raising its capital from $228 million to around $512 million in preparation for an initial public offering (IPO).

Techcom Securities JSC (TCBS) currently serves as Vietnam's most capitalised brokerage, with approximately $925.3 million following a fresh IPO.

The capital surge across the industry comes as Vietnam's stock market inches closer to a long-anticipated reclassification.

On September 12, Deputy Prime Minister Ho Duc Phoc signed Decision No.2014/QD-TTg, approving the National Plan for Stock Market Upgrade.

The goal is to transform Vietnam's stock market into a robust medium- and long-term capital mobilisation channel, while aligning with international standards and deepening global integration.

The plan outlines short-term targets to meet FTSE Russell's criteria for reclassification from 'Frontier Market' to 'Secondary Emerging Market' by 2025, and long-term ambitions to achieve 'Emerging Market' status under MSCI and Advanced Emerging Market status with FTSE Russell by 2030.

FTSE Russell is expected to release its country classification report on October 7 US time (October 8 in Vietnam). Currently on the watchlist, Vietnam is considered a strong candidate for an upgrade in the upcoming review. This prospect has significantly boosted investor confidence.

Beyond the allure of foreign capital flows post-upgrade, the domestic drive for double-digit economic growth remains a vital catalyst.

Nguyen Anh Khoa, head of research at Agriseco Securities, believes the industry stands to benefit significantly from market expansion.

"When liquidity improves, proprietary trading, margin lending, and brokerage services all see strong growth. Securities is a growth-oriented sector, well-positioned for investment in a bull market," Khoa said.

Phan Le Thanh Long, CEO of AFA Group, however, warned that opportunities won't be evenly distributed.

“Success will depend on how well companies adapt to emerging trends. Those clinging to outdated models may struggle, while firms that embrace innovation, especially in technology and digital assets under pilot programmes, will gain a competitive edge,” Long opined.

A research team at Vietcombank Securities (VCBS) forecasts an across-the-board improvement in sector performance.

In margin lending, enhanced capital will enable firms to rapidly expand margin balances in H2, supported by market liquidity and expectations of a rising VN-Index.

In investment banking, including underwriting and financial advisory, transactions are expected to rebound as global interest rates ease and mergers and acquisitions regain momentum. The IPO market also looks set for renewed vitality.

Additionally, the corporate bond segment is anticipated to catch a rebound after a challenging 2022-2023, offering further growth avenues for brokerages.

On the global stage, Vietnam is viewed as an attractive emerging market, thanks to robust GDP growth, a youthful population, and steady FDI inflows. The reclassification will open doors to billions of dollars in foreign capital, while enhancing Vietnam's international standing and credibility.

Securities firms testified mixed performance in the year to date, with some even counting losses.

Securities firms have outlined ambitious business targets during this year's AGM season.

Many securities firms posted record profits in the second quarter of 2025, fueled by bullish market sentiment, rising liquidity, and a surge in foreign inflows, though some major players lagged the uptrend.