Vietnam's first domestic exchange-traded fund, the VFMVN30 ETF, attracted major interest right on July 9, the day it received the licence for its initial public offering.
The fund will have a passive investing strategy to carry out its investment objectives, simply tracking the performance of the VN30 Index.
Ho Chi Minh City Securities and Bao Viet Securities entered into agreements to buy units worth 30 billion VND (1.4 million USD) and 20 billion VND respectively. They will also be fund authorised participants.
Tran Thanh Tan, CEO of VietFund Management, which set up and manages the fund, said he has received commitments of more than 50 billion VND from other institutional and high net-worth individual investors.
The IPO has to be for a minimum of 50 billion VND, but Tan hopes to scale up to 500 billion VND over the next six months.
The units are priced at 10,000 VND each and purchases are in lots of 100,000 units.
Registering for the IPO can be done between July 21 and August 8 with HSC and BVSC.
After the IPO the VFWVN30 ETF will be listed on the Ho Chi Minh Stock Exchange and its units will be traded in both the primary and the secondary markets.
During trading hours the fund's indicative net asset value (iNAV) and iVN30 will be calculated and made available every 15 seconds and every minute respectively. The fund's NAV will be announced daily.
Standard Chartered Bank Vietnam will provide custodial, supervisory, and administrative services for the fund.-VNA
The fund will have a passive investing strategy to carry out its investment objectives, simply tracking the performance of the VN30 Index.
Ho Chi Minh City Securities and Bao Viet Securities entered into agreements to buy units worth 30 billion VND (1.4 million USD) and 20 billion VND respectively. They will also be fund authorised participants.
Tran Thanh Tan, CEO of VietFund Management, which set up and manages the fund, said he has received commitments of more than 50 billion VND from other institutional and high net-worth individual investors.
The IPO has to be for a minimum of 50 billion VND, but Tan hopes to scale up to 500 billion VND over the next six months.
The units are priced at 10,000 VND each and purchases are in lots of 100,000 units.
Registering for the IPO can be done between July 21 and August 8 with HSC and BVSC.
After the IPO the VFWVN30 ETF will be listed on the Ho Chi Minh Stock Exchange and its units will be traded in both the primary and the secondary markets.
During trading hours the fund's indicative net asset value (iNAV) and iVN30 will be calculated and made available every 15 seconds and every minute respectively. The fund's NAV will be announced daily.
Standard Chartered Bank Vietnam will provide custodial, supervisory, and administrative services for the fund.-VNA
