VinaCapital lists Vietnamese jewellery manufacturer

The Vietnam-focused firm has listed Phu Nhuan Jewellery, its second listing of a portfolio company this month.

VinaCapital, a Vietnam-based asset management and investment firm, has listed Phu Nhuan Jewellery on the Ho Chi Minh stock exchange.

VinaCapital holds a stake of 11.7 percent in the company through the Vietnam Opportunity Fund, which is listed on the AIM. It has not exited any portion of its equity stake through the IPO, a company spokesman said. He added that the fund invested in Phu Nhuan in December 2007, but declined to comment on the amount invested.

The company listed 30 million shares on the Ho Chi Minh stock exchange with an opening price of VND38,000 ($2.17; €1.61) per share.

Phu Nhuan holds a market share of more than 15 percent in Vietnam and brands it owns include PNJGold, PNJSilver and Cao Fine. The company has 90 retail shops and 3,000 wholesalers across the country.

In 2008, the company had revenues of $240 million, a 75 percent increase as compared to 2007. In the same year, Phu Nhuan’s net profits increased 9.6 percent to $7.2 million. The growth was largely due to the company’s shift to products such as diamonds and gemstones which offer higher margins, VinaCapital said in a statement. Revenue for 2009 is expected to hit $300 million and net profits to reach $10 million.

VinaCapital managing director Andy Ho said the firm was pleased that Phu Nhuan was listed successfully considering the difficult market conditions globally.

The company’s shares were trading at VND 47,800 at the time of press, reflecting an increase of 26 percent in two days of trading.

Earlier this month, the firm sold its equity stake in Masan Group, a Vietnamese food and beverage company, for more than $20 million, generating a 2.5x return on investment. The firm had first invested in the company through the Vietnam Opportunity Fund in August 2006 and subsequently increased its stake in December 2007.

Also in March, the firm listed industrial park investor and developer Binh Chanh Construction on the Ho Chi Minh City stock exchange. The firm had acquired a minority stake in the company in 2008 for an undisclosed sum. That investment was made out of the Vietnam Infrastructure Fund.