Vietnam Digest: VOF included in FTSE 250; Dragon Capital sells 500K shares of PNJ

VinaCapital’s flagship fund, Vietnam Opportunity Fund (VOF) has been included as a constituent in the FTSE 250 Index while Dragon Capital has offloaded 500,000 shares of Vietnamese jeweler Phu Nhuan Jewelry (PNJ).

VOF included in FTSE 250 Index

VinaCapital’s flagship fund, Vietnam Opportunity Fund (VOF) has been included as a constituent in the FTSE 250 Index, effective from the start of trading on 5 March 2018.

In a statement, the fund said the entry into the FTSE 250 will help its ongoing efforts to elevate profile, reach a broader investor base, and reduce the discount between share price and net asset value.

“This process began nearly two years ago with our move to the London Stock Exchange’s Main Market in March 2016, and since then, our performance and returns have been strong. We are also proud to be the only Vietnam-focused fund that pays a dividend to shareholders,” said Andy Ho, Managing Director of VOF.

Founded in 2003 and targeting multiple asset class, VOF focusses on private equity deals. While the consumer and industrials sector accounts for the majority of its portfolio, the financial sector takes up nearly 10 per cent.

Recently, it invested $32.5 million to acquire a significant minority stake in Ba Huan JSC, the country’s leading eggs and poultry meat producer.

Earlier, it invested approximately $45 million into two subsidiaries of PetroVietnam — PV Power and Binh Son Refining and Petrochemical (BSR) — as part of their initial public offering (IPOs) conducted in January.

Dragon Capital sells 500,000 shares of PNJ

Vietnam-focused group of investment funds Dragon Capital has sold 500,000 shares of listed Vietnamese jeweler Phu Nhuan Jewelry (PNJ), according to a report released by Ho Chi Chi Minh City Stock Exchange.

Dragon Capital conducted the transaction through two funds that it manages including Norges Bank and DC Developing Markets Strategies PLC. While Norges Bank bought 200,000 shares, DC Developing Markets Strategies PLC sold 700,000 shares of the Vietnamese jeweler PNJ.

Before the transaction, Dragon Capital owned nearly 11.3 million shares of PNJ. After that, the stake of Dragon Capital in PNJ decreased from 10.37 per cent to 9.92 per cent. The net proceeds from the PNJ divestment is expected to bring to Dragon Capital VND82 billion ($3.6 million).

Last month, a group of funds run by Dragon Capital, including Vietnam Enterprise Investments Ltd. (VEIL), Wareham Group Limited, Norges Bank, KB Vietnam Focus Balanced Fund, and Hanoi Investments Holdings Limited, spent over VND841 billion ($37 million) to buy 5.22 million PNJ shares.

Dragon Capital manages closed-ended and open-ended funds across various segments of public equities, private capital, fixed income and infrastructure and also tailors assets of international entities that are keen to invest in Vietnam. It now manages more than $2.3 billion in assets.

Also Read:

VOF & DPIP invest $45m into dairy co IDP

VinaCapital acquires stake in poultry firm Ba Huan for $32.5m

Vietnam: Dragon Capital, VinaCapital pick 30% of FPT Retail