SmartInvest Securities wants to spend 160 billion VND to invest in stocks

SmartInvest Securities JSC (UPCoM: AAS) recently announced information on the Hanoi Stock Exchange (HNX) about changing the plan to use capital from the public offering of shares.

Accordingly, SmartInvest Securities initially planned to use the VND800 billion mobilized for three purposes. Of which, VND400 billion would be used to supplement capital for investment activities in valuable papers, VND240 billion would be used to supplement margin lending activities and VND160 billion would be used for underwriting activities.

However, to meet the need for business capital in line with the current stock market developments, the company wants to transfer VND 160 billion from the above-mentioned underwriting activities to securities trading activities.

Last June, SmartInvest Securities issued 120 million common shares to the public, with a par value of VND 10,000/share. Of these shares to be issued, 40 million shares are to pay dividends for 2021 at a rate of 50% (equivalent to shareholders owning 100 shares receiving 50 new shares), 80 million shares are offered to the public.

The shares will be distributed within 90 days from the effective date of the certificate of registration for offering, which is June 7. This is a capital increase plan approved at the Annual General Meeting of Shareholders taking place in 2022.

After the stock issuance and dividend payment, SmartInvest distributed nearly 120 million shares to existing shareholders. At the same time, the company's charter capital increased from VND800 billion to nearly VND2,000 billion.

AAS stock performance over the past year (Source: Trading View).

SmartInvest Securities Joint Stock Company, formerly Gia Anh Securities Joint Stock Company, was established on December 26, 2006, with a charter capital of 20 billion VND. In October 2015, the company changed its name to SmartInvest Securities and a year later, the company increased its charter capital to 310 billion VND. In March 2021, the company continued to increase its charter capital to 800 billion VND.

Previously, Smart Investment Securities issued 3 lots of bonds with codes AAS.1.20, AASL1921001, AASH2227001 in 2019, 2020 and 2022 with a total value of more than 128 billion VND. However, two lots AASL1921001 and AAS.1.20 have been settled, while the bond lot code AASH2227001 will mature in February 2027 but was bought back 60 billion VND in advance in December 2022, the remaining value is nearly 68 billion VND.

According to the periodic information disclosure on the financial situation of the enterprise, as of June 30, 2023, SmartInvest's equity increased slightly by VND 60 billion to VND 1,593 billion. However, the debt-to-equity ratio and outstanding bond debt-to-equity ratio respectively tended to decrease compared to the previous period, showing that the company has narrowed the amount of outstanding bond debt since the beginning of 2022 until now.

The stock market situation was not optimistic in the first months of 2023, SmartInvest recorded a 3-fold decrease in after-tax profit compared to the previous period, from 205 billion VND to 59 billion VND.

On the stock market, at the end of the trading session on September 19, AAS shares decreased by 3.23% to VND 12,000/share, however, compared to the bottom at the beginning of the year, the stock price has doubled .

Source: https://www.nguoiduatin.vn/chung-khoan-smartinvest-muon-danh-160-ty-dong-de-dau-tu-co-phieu-a627182.html