VOF listed on London exchange

Last week, the Vietnam Opportunity Fund (VOF) announced its listing on the main board of the London Stock Exchange (LSE), one of the world’s top five stock exchanges in terms of liquidity and size. VOF, which oversees $700 million, was listed for 12 years on London’s Alternative Investment Market before fulfilling the criteria to upgrade to the main board on March 30.

This is a significant milestone for VOF, as it will increase the fund’s liquidity and exposure to a much wider range of international investors. In order to achieve this, VOF has improved its portfolio management, business results, and overall efficiency, thus demonstrating its long-term commitment to the Vietnamese capital market.

“Being listed on the main board of the LSE is a new chapter in VOF’s development. This is a great opportunity for us to welcome more foreign capital into the much-needed economic sectors in Vietnam, and ensure sufficient liquidity for global investors while doing so,” noted Andy Ho, chief investment officer of VinaCapital.

With higher liquidity on the LSE, VOF hopes to reduce its discount level on the VN-Index from 20 per cent to 0. Other plans include getting on London’s FTSE All-Share Index and attracting more individual investors from overseas.

To complete the move to London’s main exchange board, VOF’s country of incorporation will change to Guernsey from the Cayman Islands, and the currency for listing is now British sterling instead of USD. The fund will also restructure its portfolio to focus more on Vietnamese firms, as part of the requirements set up by the LSE.

VOF will continue to pour capital into private companies in Vietnam that have an investment span of at least five years. The fund intends to buy large enough stakes in these private companies to influence management and business decisions.