VietNamNet Bridge - Vietjet Air has launched its IPO and plans to list its shares at the HCMC Stock Exchange (HOSE) on February 28. It is also considering issuing bonds in the international market.  


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As many as 300 million VJC shares of Vietjet Air will be put into the first trading session at HOSE as announced by the privately-run air carrier.

Vietjet’s announcement did not mention the VJC starting price. However, the company’s prospectus said the expected starting price was VND90,000 per share.

As such, with the daily trading band of +/- 20 percent, VJC shares would be traded within the range of VND72,000-108,000 on the first day of transactions.

With the expected price, Vietjet has a valuation of VND27 trillion, or $1.19 billion.

By January 12, 2017, Vietjet had charter capital of VND3 trillion and 664 shareholders. Of these, three big shareholders hold more than 5 percent of charter capital. 

Vietjet Air has launched its IPO and plans to list its shares at the HCMC Stock Exchange (HOSE) on February 28. It is also considering issuing bonds in the international market.  

They include Nguyen Thi Phuong Thao, who holds 9.42 percent, Huong Duong Sunny (23.24 percent) and GIC, an investment fund owned by the Singaporean government which holds 5.48 percent.

As Thao is the owner of Huong Duong Sunny, Thao directly and indirectly owns 32.66 percent of Vietjet’s stakes.

HDBank, where Thao is deputy chair, and Sovico, where Thao is founder and deputy chair, hold more than 4 percent of Vietjet shares.

Nikkei has reported that Vietjet is considering issuing bonds in international market, while it is negotiating with regional airlines and banks to find strategic investments to expand its business scale.

Vietjet is described as a ‘rising star’ in the Vietnam’s aviation market. 

The air carrier reported revenue of VND27.532 trillion in 2016, an increase of 39 percent compared with 2015, and pretax profit of VND2.4 trillion, an increase of 4.9 percent compared with 2015. With post tax profit of VND2.291 trillion, the EPS is VND8,726.

Vietjet’s IPO was the special event for Vietnamese and foreign investors. This was not only because of the fame of the privately run airline, but also because this was the first Vietnamese enterprise which had an IPO in accordance with international standards and process.

In February 2014, when Vietjet signed a contract with Airbus on purchasing and leasing 100 aircraft, the move was doubted as a PR campaign. 

However, the airline dispelled the doubt after gaining great success. More and more domestic and international air routes have been launched by the carrier, which began operating five years ago. 

To date, Vietjet has 60 domestic air routes and international routes to Singapore, Hong Kong, South Korea, Taiwan, China, Thailand, Myanmar, Malaysia and India.


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