Dragon Capital increases stake in Sacombank

October 24, 2023 | 15:14
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Dragon Capital, a prominent investment group, has bolstered its position in Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) by acquiring an additional 3.5 million shares on October 19.
Dragon Capital increases stake in Sacombank

The move comes at a time when Sacombank's shares experienced a notable dip, reaching their lowest in over two months following a nearly 13 per cent decrease from their 18-month peak achieved in mid-September.

On October 19, several funds managed by Dragon Capital announced their combined purchase. Specifically, Amersham Industries Limited acquired 250,000 shares, KB Vietnam Focus Balanced Fund secured one million shares, and Vietnam Enterprise Investments Limited (VEIL) added another 2.25 million shares of Sacombank

Post these transactions, the foreign fund group's total ownership in Sacombank surged to 96.2 million shares, corresponding to a stake slightly over 5.1 per cent. This development has re-established Dragon Capital as a major shareholder of the bank as of October 23. It is worth noting that Dragon Capital had previously reduced its Sacombank holdings and exited its major shareholder position at the beginning of July.

After the aforementioned adjustment, Sacombank's shares rebounded and are currently trading around VND 30,000 (approximately $1.27) per share, reflecting a 33 per cent increase since the beginning of the year.

Indeed, Sacombank remains a compelling name, attracting significant foreign interest, especially from large investment funds. Alongside Dragon Capital, the Finnish Pyn Elite Fund holds a substantial quantity of these shares. In fact, Sacombank is the fund's largest investment, including 15.6 per cent of its portfolio as of October 10, equivalent to a value exceeding €112 million.

In its most recent letter to investors, Pyn Elite Fund projected that Sacombank's net profit might witness growth of up to 48 per cent on-year, nearing $316.5 million. In the first eight months of the year, Sacombank estimated a total net revenue of almost $738.5 million, an uptick of 9.3 per cent compared to the same period in 2022.

Additionally, its pre-tax consolidated profit reached $260.5 million, soaring by 56 per cent from the previous year, achieving 65 per cent of the assigned target by the shareholder meeting.

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By Lam Tien

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