VinaCapital has invested US$15 million through its Vietnam Opportunity Investment Fund Ltd in Prime Group, a Vinh Phuc Province-based manufacturer of construction materials and household appliances.
The investment, made at the end of March, gives Vinacapital a 7 percent stake in the group -- which has a registered capital of VND1.02 trillion ($52.8 million) -- Nguyen Van Nghia, deputy chairman of Prime Group, said.
Andy Ho, managing director of VinaCapital, said the decision to invest in Prime was based on two criteria -- the capability and vision of the group’s management and its business prospects.
Prime Group plans to launch an initial public offering in the second half of this year, issuing some 10 percent of its shares to the public and listing on the stock exchange.
Prime Group is the biggest tile manufacturer in Vietnam, with eight plants, a countrywide distribution system, and more than a 30 percent share of the market.
It is expected to achieve over 25 percent annual growth for the next three years with the opening of a new tile factory to raise output by 20 percent from the current 90 million square meters per year by 2011.
Prime Group was established in 1999 as Vinh Phuc Company Ltd and now has 25 subsidiaries, an associated company, nine joint ventures, and a network of 100 distributors and 30,000 dealers.
VOF, which has a chartered capital of VND800 billion ($42.2 million), is the second fund to invest in the group after DWS Vietnam Fund Ltd.
The latter, managed by Deutsche Asset Management (Asia) Limited, a member of the Deutsche Bank Group, invested $20 million at the end of 2008.
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