VOF investee DIC Corp lists o
RNS Reach
19 August 2009
VinaCapital Group
VOF investee DIC Corp lists on Ho Chi Minh Stock Exchange
Ho Chi Minh City - VinaCapital Vietnam Opportunity Fund Limited ('VOF'), an AIM-quoted investment vehicle focused on Vietnam, announces today the successful IPO of its investee company DIC Corp, one of Vietnam's leading real estate developers.
Development Investment Construction Joint Stock Company (DIC Corp) is an urban township developer whose assets include the 464-hectare Dai Phuoc township project near Ho Chi Minh City and a 447-hectare township project in Vinh Phuc province, south of Hanoi. The company reports a total land bank of over 1,300 hectares.
DIC Corp was partially privatised in 2008, with the state retaining a 65 percent stake. VOF holds a 10.9 percent stake and 2.9 percent is held by company employees, with the remainder held by institutional and individual investors.
Andy Ho, Head of Investment at VOF's Investment Manager, VinaCapital Investment Management Ltd, says: 'VOF's stake in this investee represents a very important strategic relationship, as VOF has also co-invested with DIC Corp in the 200-hectare Dai Phuoc Lotus township project'. (Note: VOF and VinaCapital's VinaLand Limited own a combined 72 percent stake in Dai Phuoc Lotus).
'DIC Corp has strong management and a deep asset base. Three-year annual earnings growth for 2010-2012 is estimated at 20 percent, which we believe is feasible given the strong market in Vietnam for the sale of residential land lots, villas and apartments.'
For FY2009, DIC has targeted revenues of USD81 million and net income of USD25 million, with a 2007-2009 earnings CAGR of over 30 percent. In H1 2009, DIC reported revenue of USD35 million and net profit of USD12 million, 43 and 51.5 percent of the 2009 targets, respectively.
DIC Corp began trading on the Ho Chi Minh Stock Exchange on 19 August 2009 under the symbol DIG at an initial listing price of 5.5x par value. At this price, VOF has achieved an unrealised gain of 77.8 percent compared to its original cost of investment in early 2008.
For more information:
Ms Chi Nguyen
VinaCapital Investment Management Limited
Investor Relations
+84 8 821 9930
Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Broker
Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
David Cranmer
Financial Dynamics, Public Relations (London)
+44 207 269 7100
Notes to Editors:
VinaCapital Group is the leading asset management firm in Vietnam, with over USD1.6 billion in assets under management as of July 2009. More information is available at www.vinacapital.com.
VinaCapital Vietnam Opportunity Fund Limited (AIM: VOF) (the 'Company'), is a closed-end fund traded on the AIM Market of the London Stock Exchange plc. Launched in September 2003, the Company focuses on the key growth sectors of the domestic economy including financial services, retail, consumer goods, tourism, property, infrastructure, and technology. It makes equity and debt investments in listed, OTC-traded, and private companies, and participates in the privatisation of state-owned companies. The Company's net asset value at 31 July 2009 was USD706 million.
More information about the Company can be found at the Company's website at www.vietnam-opportunity-fund.com.
This information is provided by RNS
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