VIX Securities plans to increase capital by 6,360 billion, stock price immediately drops 20%

Previously, at the 2024 Annual General Meeting of Shareholders held in March 2024, VIX Securities announced its capital increase plans to shareholders. Specifically, VIX will issue shares to pay dividends at a rate of 10%, equivalent to issuing 66.9 million shares.

In addition, VIX also plans to offer additional shares to existing shareholders at a rate of 95%. Equivalent to issuing an additional 635.07 million shares. The offering price of shares is VND10,000/share.

The capital expected to be raised from this offering of VND6,360 billion will be used to supplement capital for business operations and margin lending.

In addition, VIX also wants to issue 20 million ESOP shares as bonuses to employees at VND10,000/share. ESOP shares will be restricted from transfer for 1 year from the date of issuance.

At the time of announcement of the plan on March 22, 2024, VIX shares were priced at VND 20,150/share. Thus, VIX Securities is preparing to issue a large number of shares at a price less than half of the market price.

Recently, the Board of Directors of VIX Securities has also announced additional criteria for selecting investors to buy odd shares and undistributed shares in the offering plan. If the offering plan is successful, VIX Securities will increase its total charter capital to VND14,593 billion.

Issuing a large number of VIX shares will cause significant dilution and affect the market price of this stock on the stock market. And although not officially issued, the price of VIX has already dropped by 20% compared to March. In the trading session on June 28, 2024, VIX shares were only trading at VND 16,400/share.