VOF investee Eximbank lists o
RNS Reach
30 October 2009
VinaCapital Vietnam Opportunity Fund Limited
VOF investee Eximbank 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 Eximbank, one of Vietnam's top joint stock financial services companies. VOF holds a 5.0 percent stake in Eximbank.
Eximbank, established in 1990, is one of Vietnam's leading joint stock banks, offering a full range of personal and commercial banking services while also focused on settling and financing import-export trade.
Eximbank, formerly traded on Vietnam's OTC market, listed 880 million shares on the Ho Chi Minh Stock Exchange on 27 October 2009 with an opening price of VND28,000 (USD1.56) per share. The price rose to VND29,000 (USD1.61) per share at the end of trading, resulting in a 3.6 percent gain for pre-IPO shareholders. The bank's market capitalisation after its first day of trading was USD1.42 billion, making it Vietnam's third largest joint stock bank by market capitalisation after Vietcombank (VCB) and Asia Commercial Bank (ACB).
Eximbank's profit before tax over the first 9 months of 2009 was VND1,163 billion (USD65 million), up 8 percent over the same period in 2008. Net profit after tax for 2009 is expected at VND1,147 billion (USD64 million), up 61 percent over last year. The price-to-book ratio is currently 1.78x, below the 3.5x ratios of its two main competitors, VCB and ACB. Eximbank has benefitted in 2009 from the Vietnamese government's economic stimulus package that has allowed banks to increase loan volumes to businesses at a subsidised interest rate.
"We are very happy that Eximbank has successfully listed on the Ho Chi Minh Stock Exchange, as it will result in increased liquidity at a time when the market for financial services companies is fast improving. Eximbank is a top brand in a key economic sector. We expect financial services to continue to grow over the medium term, which in part is why we have elected to hold our shares through the IPO," says Andy Ho, managing director of VOF's investment manager, VinaCapital Investment Management Ltd.
"Eximbank is likely to achieve its earnings growth target for 2009. The company reports net profit for the first nine months of 2009 at VND872 billion (USD49 million), more than 76 percent of the yearly target for 2009," adds Andy.
Notes to Editors:
VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.7 billion in assets under management as of August 2009.
VinaCapital Investment Management Ltd manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are:
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Vietnam Opportunity Fund (VOF) is a USD823 million diversified investment fund that has consistently been among the top performing Vietnam funds.
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VinaLand Limited (VNL) is a USD655 million real estate fund that was the top performing Vietnam investment fund in 2008.
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Vietnam Infrastructure Limited (VNI) is a USD265 million fund established in July 2007 as the first overseas fund to invest solely in Vietnam's infrastructure sector.
VinaCapital also co-manages the USD32 million DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson, and owns a dominant stake in VinaSecurities JSC, a brokerage. More information is available at www.vinacapital.com.
More information on VOF is available at www.vinacapital.com/vof.
Enquiries:
Ms Chi Nguyen
VinaCapital Investment Management Limited
Investor Relations
+84 8 821 9930
Hiroshi Funaki +44 20 7845 5960
LCF Edmond de Rothschild Securities, Broker
Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
Andrew Walton
Financial Dynamics, Public Relations (London)
+44 2072697204
Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
This information is provided by RNS
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