LONDON, May 23, 2016 /CNW/ - Dragon Capital, one of the leading investment management companies investing in Vietnam, today announces the intention to list its flagship fund, Vietnam Enterprise Investments Limited ("VEIL"), on the Main Market of the London Stock Exchange.
Launched in 1995, VEIL is the largest and longest-running fund focused on Vietnam with a Net Asset Value ("NAV") of approximately US$850 million. The London listing is expected to create a more transparent and liquid market in VEIL's shares, widening potential ownership, attracting greater analyst coverage, increasing VEIL's profile and narrowing the discount to NAV at which the shares currently trade.
On 21 June 2016, VEIL will hold an EGM for the approval of certain matters relating to the proposed listing. It is expected that admission to trading of VEIL's shares on the Main Market of the London Stock Exchange will take place in early July 2016.
Post-listing, VEIL is expected to become a key vehicle for exposure to Vietnam given its size and equity-only investment mandate, appealing to both institutional and retail investors. Approximately half of VEIL's NAV is represented by stocks which are at their foreign ownership limits and cannot otherwise be accessed by foreign investors.
In macroeconomic terms, Vietnam has an attractive growth profile. GDP rose 6.7% in 2015. There are strong FDI inflows and a young, expanding and well-educated workforce. The country also stands to benefit from the recent Free Trade Agreement with the EU and the US-led Trans-Pacific Partnership.
VEIL is managed by Dragon Capital, established in 1994 with approximately 100 employees and US$1.3 billion under management across various funds and accounts.
Dominic Scriven, Executive Chairman of Dragon Capital Group, said: "This is a milestone for VEIL and Dragon Capital. With the listing in London, we are responding to demand from a wide range of investors looking to benefit from Vietnam's growing economy. Increased access and transparency will overcome barriers for a number of institutional and retail investors."
About Dragon Capital
Founded in 1994, the Dragon Capital Group is an integrated investment management company focused on Vietnam and the Mekong region. Dragon Capital and its affiliates manage some US$1.3 billion in assets spanning public equity, private equity, fixed income and property. Dragon Capital's majority shareholders are the company's founders, management and staff.
SOURCE Dragon Capital