Dragon Capital Exits Major Shareholder Status at PV Drilling (PVD) After Stake Sale

Overview

Dragon Capital, a prominent foreign fund group, has reduced its stake in PV Drilling (PVD) to 4.97%, ceasing to be a major shareholder after selling 200,000 shares on April 10. The sale follows a brief period of accumulation just weeks earlier. Separately, PV Drilling has released a cautious 2026 business plan with lower profit targets and a proposed 66.9% rights issue to fund capital expenditure.

Key Facts

• Dragon Capital sold 200,000 PVD shares on April 10, 2026, through its member fund Hanoi Investments Holdings Limited.
• Post-sale, Dragon Capital holds 27.6 million shares, representing 4.97% of PV Drilling’s capital, below the 5% major shareholder threshold.
• The sale was executed at a price of VND 32,850 per share, yielding approximately VND 6.6 billion.
• Dragon Capital had only become a major shareholder on March 24, 2026, after buying over 1.2 million shares.
• PV Drilling targets 2026 consolidated revenue of VND 11,185 billion (down slightly) and net profit of VND 800 billion (down 23% year-on-year).
• The company plans a rights issue of nearly 371.9 million new shares at a ratio of 66.9% (669 new shares per 1,000 held), increasing charter capital from VND 5,563 billion to VND 9,282 billion.
• No dividend will be paid for 2025, retaining over VND 708 billion in earnings.

What Happened

Dragon Capital reported the sale of 200,000 PVD shares on April 10, executed by its member fund Hanoi Investments Holdings Limited. This reduced the group’s total holding to 27.6 million shares, or 4.97% of PV Drilling’s capital, thereby losing its status as a major shareholder. The sale came just over two weeks after Dragon Capital had crossed the 5% threshold on March 24 by purchasing more than 1.2 million shares across two funds.

In a separate development, PV Drilling announced its 2026 annual general meeting (AGM) scheduled for April 21 in Ho Chi Minh City. The company’s board has proposed a cautious business plan for 2026, with consolidated revenue of VND 11,185 billion and net profit of VND 800 billion, representing a 23% decline from the previous year. The plan assumes five rigs operating throughout the year, with the PV Drilling IX rig expected to commence operations in Q2 2026 at an average day rate of USD 90,000. Additionally, the company plans to maintain one TAD rig in Brunei and operate two leased rigs.

Market Context

PVD shares closed at VND 33,000 on April 15, down 1.35% with a volume of 2.95 million shares. The stock has been under pressure amid cautious sector sentiment and the recent stake reduction by a major foreign investor. PV Drilling is listed on HOSE and operates in the oil and gas drilling services sector, which is sensitive to global oil prices and domestic exploration activity. The proposed rights issue, if approved, would significantly dilute existing shareholders, potentially weighing on the stock in the near term.

Strategic Significance

Dragon Capital’s exit from major shareholder status, after a brief accumulation period, may signal a lack of conviction in PV Drilling’s near-term outlook, particularly given the company’s cautious 2026 guidance and the dilutive capital raise. The rights issue, aimed at funding capital expenditure of VND 4,229 billion (including a new rig and equipment), underscores the company’s need for external financing amid lower retained earnings. For long-term investors, the key question is whether the investment in new rigs will generate sufficient returns to offset dilution and declining profitability. The decision to skip dividends for 2025 further highlights the company’s focus on reinvestment over shareholder returns.

What to Watch

• Approval of the rights issue by the State Securities Commission and shareholder vote at the April 21 AGM.
• Q1 2026 earnings release, expected in late April, to gauge operational performance and rig utilization.
• Global oil price trends and their impact on day rates for jack-up rigs in Southeast Asia.
• Any further stake changes by Dragon Capital or other major shareholders in PVD.
• Progress on the PV Drilling IX rig deployment and its contribution to revenue in Q2 2026.