E1VFMVN30 is listed on Thailand Stock Exchange as DR in December 2018
The first depository receipt (DR) listed on the Stock Exchange of Thailand (SET) will be an exchange-traded fund (ETF) of blue-chip stocks listed on the Ho Chi Minh City Stock Exchange (HSX), issued by Bualuang Securities (BLS). The security has already been filed for fundraising with the Securities and Exchange Commission for a total investment worth around 5 billion baht.
The fund will invest in the VFMVN30 ETF, which was launched and managed by VietFund Management Company (VFM). E1VFVN30 is the largest domestic ETF in Vietnam with fund size as of 3969,2 Bn VND (177 Mn USD) and also the only Vietnam ETF listed on both Korea and Thailand stock markets. On KRX, the fund is the underlying asset for another Korean domestic ETF called Kindex Vietnam VN30 ETF (Synth). The fund is the first domestic ETF replicating the performance of the VN30 Index, which comprises the 30 highest-liquidity stocks in the Vietnamese stock market. The fund has no foreign ownership limit.
“The DR has long-term investment value because it invests in large-cap stocks through an ETF. We are confident Vietnam will be among high-growth countries in Asia, with annual economic growth of 6%,” said Mr Bannarong Pichayakorn, managing director for sales and trading at BLS. For the past five years, the Vietnamese dong depreciated by around 10% against the greenback, but listed companies’ net profit grew at a faster pace, said BLS.
IPO for the DR and official trading is expected to be effective in December 2018.