Investment funds hold firm in Vinhomes amid market shifts

October 27, 2023 | 18:20
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Several investment funds, including heavyweights like the Government of Singapore Investment Corporation (GIC) and KKR, are maintaining their substantial holdings in Vinhomes.
Investment funds hold firm in Vinhomes amid market shifts

Approximately ten institutional investment funds are now holding nearly 163 million shares in Vinhomes (HSX: VHM), equating to about 3.74 per cent of its chartered capital.

This revelation comes amidst a significant downturn in VHM's share price, which experienced a sharp decline to VND41,800 per share (approximately $1.76) during the trading session on October 26.

Since early August, VHM's stock has witnessed a downward trajectory, plunging roughly 34 per cent, eroding its market capitalisation by about VND92 trillion (approximately $3.88 billion).

A representative from Vingroup shed light on the stock's recent movements, linking it to the completion of a $250 million international bond issuance on the evening of October 25. These bonds, maturing in 2028, are convertible into Vinhomes shares owned by Vingroup.

October 26 also saw several international investors involved in the bond issuance sell off their Vinhomes shares as part of a hedging strategy to finalise their bond transactions.

"The bulk of VHM share sales on October 26 were predominantly from foreign investors, with a net sell of about 5.66 million shares,” said a market insider.

Foreign investors currently hold over 1.08 billion shares, amounting to just under 25 per cent of Vinhomes' capital.

At least 14 funds are reportedly now in possession of roughly 474 million VHM shares, corresponding to about 11 per cent of Vinhomes' chartered capital.

Among these, GIC holds the largest foreign stake with 217.4 million shares, representing 4.99 per cent of the company's chartered capital.

Following a divestment of 453,400 shares on August 18, GIC's stake dropped from 5 per cent to 4.99 per cent, no longer categorising it as a major shareholder in Vinhomes. Since GIC's divestment, VHM shares have decreased in value by approximately 26 per cent.

Another significant foreign shareholder was KKR, through its entity Viking Asia Holdings II. Similar to GIC, KKR reduced its holding to 4.6 per cent in September 2021, with no recent updates on its current stake in VHM.

VHM is one of the market's largest capitalised stocks and consistently features in the top holdings of familiar investment funds. Vinhomes ranks within the top eight major investments of both VEIL and VOF, is the primary holding of VanEck Vietnam exchange-traded fund (ETF), and the second largest of PYN.

PYN Elite possesses about 50 million VHM shares, equating to 1.15 per cent of Vinhomes' chartered capital.

"VHM and Vincom Retail collectively constitute over 21 per cent of our fund's value, with Vincom Retail being our third-largest stock holding," a PYN Elite representative said.

Following closely is the Fubon FTSE Vietnam ETF, which owns 38.4 million VHM shares, or 0.88 per cent of Vinhomes’ chartered capital.

Other prominent names among Vinhomes investors include Dragon Capital VEIL, VinaCapital VOF, VanEck Vietnam ETF, and Norges Bank, each holding over 10 million VHM shares.

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By Lam Tien

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