VIT Securities will merge with MB Securities on November 1 in Vietnam's first merger between securities firms, which recently received approval from the State Securities Commission.

The commission also granted a certificate for the exchange of stocks between the companies. More than 62.1 million shares will be issued.

The new brokerage after the merger will have a charter capital of 621 billion VND (29.2 million USD) due to the stock swap ratio. MB Securities shareholders will receive one new share for each two shares they currently own, while the ratio for VIT Securities shareholders is 1:0.462.

MB Securities has a charter capital of 1.2 trillion VND (56.6 million USD), 120 million outstanding shares and convertible bonds worth 600 billion VND (28.3 million USD). VIT Securities has a charter capital of 46 billion VND (2.1 million USD).

VIT Securities posted losses of 4.1 billion VND (193,300 USD) in the first six months of this year. As of the second quarter, its accumulated losses reached 24.6 billion VND (1.1 million USD), 53 percent of the charter capital. The company's total assets amounted to only 29 billion VND (1.3 million USD). Both companies are unlisted.-VNA