FPT (FPT) said on Monday, it plans to offer stockbroking services next month to tap into investor interest in one of the world's fastest-rising emerging stock markets.
The State Securities Commission has approved FPT to establish a brokerage firm with registered capital of 200 billion dong ($12.4 million), FPT's Deputy General Director Le Quang Tien said in a statement via the Ho Chi Minh Stock Exchange.
"Probably it would come in a month," FPT Chief Executive Truong Gia Binh told Reuters of when the brokerage expected to become operational.
The move takes FPT outside its core businesses of software production, mobile phone distribution and Internet services. FTP is valued at around $2 billion and is the second-largest company on Vietnam's main stock market after diary product maker Vinamilk (VNM).
Vietnam established its stock market in 2000 but the number of stock brokerages entering the market mushroomed last year to reach 55 companies riding a wave of initial public offerings that helped lift the index by 144.5%.
FPT stock closed up an effective 3.3% at 372,000 dong ($23.1) on Monday as the VN Index edged up 1.77% to close at 1,085.41 points, a rise of 44% so far this year.
Before Monday's trade, FPT share prices were adjusted down 33.5%, or 181,000 dong ($11.2) each, from Friday's close of 541,000 dong (33.6) to reflect a two-for-one share dividend share issue.
In October 2006 FPT sold a combined 10% to private equity group Texas Pacific Group and Intel Capital, a unit of Intel Corp.
Foreign investors now hold nearly 20% stake in FPT, compared with a government limit for foreign ownership at 49% for listed, non-bank companies.
Source: Reuters
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