Ho Chi Minh City-based asset management firm VinaCapital has invested $10 million in Ricons Construction Investment JSC, a subsidiary of the country’s leading developer Cotec Construction Joint Stock Company (CotecCons).
“This investment is consistent with our strategy of investing in companies benefiting from strong domestic growth,” a representative from VinaCapital told DEALSTREETASIA in an interaction. The investment in Ricons was made through its London Stock Exchange-listed Vietnam Opportunity Fund (VOF).
Established in 2004 as a real estate investment company, Ricons later diversified into construction. It has since implemented large civil and industrial projects across the country. Investors include Dragon Capital, SSI AM, Havana and Daiwa Investment.
In January, Ricons completed its offer for sale of over 8.13 million shares to the public, earning VND203.4 billion ($8.94 million) in the process. The company on March 14 also officially increased its charter capital to VND305 billion ($13.4 million).
In 2017, Ricons exceeded its stated targets for both revenue and profit. The company’s net revenue at VND6.5 trillion ($286 million) and net profit at VND287 billion ($12.6 million) were up 37 per cent and 50 per cent respectively, compared to 2017.
CotecCons, which owns a nearly 15 per cent stake in Ricons, was selected as the general contractor for the 81-storey Landmark 81, part of Vinhomes Central Park developed by real estate giant Vingroup. Once finished, Landmark 81 will be Vietnam’s tallest tower.
Last month, VOF invested $32.5 million to acquire a significant minority stake in Ba Huan JSC, the country’s leading eggs and poultry meat producer. VinaCapital’s flagship fund earlier also invested approximately $45 million into two subsidiaries of PetroVietnam- PV Power and Binh Son Refining and Petrochemical (BSR) – as part of their initial public offerings (IPOs) conducted in January.
Founded in 2003, VinaCapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of $1.8 billion in assets under management.