Dragon Capital spends $3.7m to up stake in securities firm, pares MBBank holding

A client counts Vietnamese dong banknotes at a bank in Vinh Yen city, Vietnam, August 19, 2015. REUTERS/Kham

Dragon Capital, a Vietnam-focused group of investment funds, purchased one million shares of Viet Capital Securities (VCSC), raising its ownership to 9.06 per cent of the latter’s chartered capital, according to a stock exchange disclosure.

The investment firm spent about VND85.2 billion ($3.7 million) to increase its ownership in VCSC.

Dragon Capital also sold 350,000 shares of Military Bank (MBBank), reducing its ownership in the bank from 6.01 per cent to 5.99 per cent.

The transaction was conducted through a group of nine investors under Dragon Capital. Among them, Vietnam Enterprise Investments Limited and Norges Bank sold 200,000 and 150,000 shares of MBBank respectively.

The Vietnamese investor is said to have earned VND10.7 billion ($470,800) by selling MBBank shares.

VCSC posted 2017 revenues of VND1.53 trillion ($67 million), up 77 per cent compared to the previous year.

In the first quarter of this year, MBBank posted revenues of VND3.68 trillion ($161.3 million), up 33 per cent year-on-year, and profit after tax of VND1.4 trillion ($61.3 million), up 65 per cent year-on-year.

Dragon Capital had in March purchased 15.3 million shares of Saigon Beer Alcohol and Beverage Corp (Sabeco) from Singapore-based Nogard Pte. Ltd, according to Vietnam Securities Depository (VSD).

The transaction’s value was not disclosed. However, based on Sabeco’s share price of VND214,000 ($9.4) per share on March 15, the transaction’s value is estimated at VND3.27 trillion ($143.8 million). Among seven funds, VEIL received the largest number of Sabeco shares with over 8 million shares.

Dragon Capital manages closed-ended and open-ended funds across various segments of public equities, private capital, fixed income and infrastructure. It now manages more than $2.3 billion in assets.

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