VinaCapital, an asset management group focused on Vietnam, has announced the successful IPO of its investee company Phu Nhuan Jewelry.
VinaCapital, an asset management group focused on Vietnam, has announced the successful IPO of its investee company Phu Nhuan Jewelry.
Phu Nhuan Jewelry has 90 retail shops and 3,000 wholesalers nationwide. The company holds over 15 per cent market share with a range of products including PNJGold, PNJSilver and the premium Cao Fine brand.
Phu Nhuan Jewelry, formerly a private company, listed 30 million shares on the Ho Chi Minh Stock Exchange on 23 March 2009 with an opening price of VND38,000 (USD2.17) per share. The price rose to VND45,600 (USD2.60) per share at the end of trading, resulting in a 20 per cent gain for pre-IPO shareholders.
The firm’s 2008 revenue of USD240m was a 75 per cent increase over 2007, while net profit for 2008 rose 9.6 per cent to USD7.2m.
VinaCapital says Phu Nhuan Jewelry’s move to higher margin products including the diamond and gemstone market offers the potential for substantial revenue growth. With the continued high price of gold expected to continue for 2009, revenue is forecast at USD300m, with net profits of USD10.0m. This implies a price-to-earnings ratio of 7.8x on Phu Nhuan Jewelry’s USD78m market capitalisation at the close of trading on 23 March.
VinaCapital holds an 11.7 per cent stake in the company via its Aim-traded Vietnam Opportunity Fund.
‘We are very happy that Phu Nhuan Jewelry has successfully floated on the Ho Chi Minh Stock Exchange, particularly given the difficult market conditions globally. We believe Phu Nhuan Jewelry will continue to perform well and remain among Vietnam’s top jewelers for many years due to the company’s range of brands, strong distribution and solid management,’ says Andy Ho, VinaCapital managing director.
