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Tag: Pawnshop

  • F88 Pawnshop Chain Sets Exciting IPO at $24 Per Share – A New Investment Opportunity Awaits!

    F88 Pawnshop Chain Sets Exciting IPO at $24 Per Share – A New Investment Opportunity Awaits!

    In a significant development for Vietnam’s consumer finance landscape, F88 has secured approval to list on the Unlisted Public Company Market (UPCoM), starting August 8 at VND634,900 (approximately US$24.21) per share.

    The listing will consist of over 8.26 million shares, positioning F88 with a market capitalization of VND5.24 trillion (around $200 million). This initial listing price is strikingly 13 times higher than the average share price of blue-chip companies on the Ho Chi Minh Stock Exchange (HoSE), making F88 a notable new player in the market.

    The UPCoM was established to drive companies towards greater participation in the securities market, ultimately paving their way to listings on either HoSE or the Hanoi Stock Exchange. F88’s chairman, Phung Anh Tuan, has ambitious plans, aiming for a listing on HoSE with a market cap of $1 billion by 2027.

    The company has been showing robust performance in the consumer finance sector, with impressive financial results reported for the second quarter. F88 achieved revenue of VND925 billion, a remarkable 30% year-over-year growth, alongside a staggering pre-tax profit of VND89 billion, reflecting a 220% increase.

    This impressive growth trajectory is attributed to a 47% surge in loan disbursements and an almost 45% increase in outstanding loans. By the end of June, F88 had already met 48% of its annual profit target and reached its expansion goal ahead of schedule, launching 888 new outlets across the country.

    In a strategic move to bolster its leadership, F88 recently welcomed Piyasak Ukritnukun, a seasoned financial expert from Thailand, as an independent board member. This injection of experience promises to steer the company further towards its ambitious objectives.

    Questions & Answers

    What does F88’s listing on UPCoM signify for the company?
    F88’s listing on UPCoM marks a significant step in its growth strategy, enhancing visibility and attracting potential investors as it aims for a future listing on HoSE.

    How has F88 performed financially leading up to its market debut?
    The company has reported a stunning financial performance in Q2, with a 30% revenue increase and a 220% leap in pre-tax profit, driven by increased loan activity.

    Who has recently joined F88’s leadership team?
    F88 has appointed Piyasak Ukritnukun, a financial expert from Thailand, as an independent member of its board, bringing valuable experience to the company’s strategic direction.

  • Pawnshop chain F88 reports H1 loss following investigation

    Pawnshop chain F88 reports H1 loss following investigation

    F88 Business JSC recorded a loss of VND368 billion (US$15.3 million) in the first half after police launched investigations into wrongdoings at the company.

    Representatives of the pawnshop and loan firm cited the high cost of risk as the main reason for the loss.

    The cost of risk means the cost of incurring losses because of risk and managing risks. The total of this cost is the sum of every aspect of a company’s functions relating to risk.

    According to F88, a recent inspection into debt collection conducted at businesses in the financial sector, including the company itself, had affected customers’ tendencies towards debt payment. This forced businesses to tighten their risk appetite, which means the amount of risk an organization is willing to take in pursuit of objectives it deems valuable.

    At the same time, results of the investigations limited F88’s ability to open new offices.

    In the past time, police have probed a number of F88 branches across the country, including those in HCMC, Binh Duong and Can Tho, after detecting several violations. The violations included mismanagement of data and insufficient business activity reports.

    In HCMC alone, investigations have been launched into 10 individuals who are either managers or staff at the company.

    Founded in 2013, F88 has claimed to be the fastest-growing financial service provider in Vietnam. It has 830 branches throughout the country. After the latest investigation, the firm said it has developed processes, regulations, and sanctions in debt collection activities, ensuring it would comply with the law and not cover for individuals who break the rules.

    F88 reported continuous profits in the 2019-2021 period, with the average annual figure hovering in the tens or hundreds of billions of dong (VND10 billion equals US$415,000).

    Last year, after tax profits peaked at more than VND200 billion.

    During the period, many financial companies reported decreased profits or even heavy losses ranging from hundreds of billions to thousands of billions of dong as their customers face financial difficulties and could not pay their debts.

    The company plans to issue more private bonds in the last six months.

    In March, F88 received investment funds of $50 million from two investors – Vietnam-Oman Fund and Mekong Enterprise Fund IV.

  • Pawn shop chains raise big bucks to expand

    Pawn shop chains raise big bucks to expand

    Vietnamese pawn shop chains have been attracting increasing investment for several years now as large demand for quick loans prompt their expansion.

    Leading jeweler Phu Nhuan Jewelry (PNJ) recently announced that it would acquire a 30 percent stake in pawnshop chain Golden Friend Jsc.

    The Ho Chi Minh City-based pawn shop chain was founded in 2017 with a charter capital of VND1 billion ($43,400), which was raised after six months to VND10 billion.

    The company introduces itself as a strategic partner of PNJ. It has 21 pawn shops, all located inside PNJ stores.

    Earlier this month, HCMC-based pawn shop chain T99 raised VND20 billion from a famous singer, after having received a similar amount from another celebrity last year.

    Another chain, F88, one of the earliest pawn shops chains in the country, raised VND10 billion from a celebrity in 2019 after receiving funds from foreign investors like Mekong Enterprise Fund III and Granite Oak. The chain has 180 shops in 25 localities.

    Pawn shop chains have become more popular in recent years, as they attract customers by offering more professional services than traditional pawn shops.

    Some of them say customers can get a loan money in 15-30 minutes via a quick review process for collateral assets, which can include smartphones, jewelry, motorbikes and cars.

    Most chains have been posting impressive growth figures. F88 last year saw outstanding loans rise 230 percent from 2019 while revenues rose 220 percent. The actual figures were not disclosed.

    The chain, which has nearly 2,000 employees, saw its equity rise 160 percent last year. It raised VND400 billion through bonds last year.

    Another chain, Vietmoney, saw its revenue rise 270 percent year-on-year last year. It has recently sold a 30 percent stake to two foreign investment funds.

    T99, which only entered the market earlier this year, targets having 500 shops nationwide in the next three years and to list on the stock market.

    Observers say that the pawn shop industry has high growth prospects thanks to a high demand for quick loans.

    Around 48 percent of the population has incomes of under $300 per month, and these are potential customers for consumer loans, according to financial data service provider FiinGroup.

    The CEO of F88, Phung Anh Tuan, said it is estimated that 70 percent of Vietnamese citizens still lack access to professional financial services, and this means there is great growth potential for the pawn shop industry.

    Le Dat Chi, deputy head of the School of Finance under the University of Economics Ho Chi Minh City, told local media that as there are many Vietnamese who are not eligible to receive loans from banks, pawn shop chains will serve their credit demand.

    However, more regulations are needed to manage this type of service so they will not be taken undue advantage of by loan sharks, which could have bad consequences for the financial system, he added.