Vietjet Aviation Joint Stock Company will list 300 million shares on the HCM Stock Exchange (HOSE) in late February after it managed to retain an approval for the same.

The HCM Stock Exchange (HOSE) has approved the listing of Vietjet Aviation Joint Stock Company’s 300 million shares on the southern bourse.

The company will be listed with the code VJC at the opening price of VND90,000 (US$4) per share.

With the daily trading limit of 20 per cent on either side, the aviation company’s share price could range between VND72,000 and VND108,000 per share.

On the opening price of VND90,000 per share, Vietjet’s market capitalisation is VND27,000 trillion, equal to $1.2 billion.

Vietjet did not clarify the date of share listing in its financial prospectus; however, a source told local news site zing.vn late Thursday that Vietjet’s shares would be traded at HOSE on February 28.

On January 25, Vietjet registered its 300 million shares with the Vietnam Securities Depository.

According to Reuters, Vietjet Air has sold 44.8 million shares of current shareholders to institutional investors at VND84,600 per share, and 3.5 million shares to individual investors for VND86,500 per share.

About 30 international corporations and investment funds have offered to purchase Vietjet’s shares, including Morgan Stanley, Mirae Asset, Dragon Capital and VinaCapital.

According to a recent report by Vietnam Enterprise Investment Limited (VEIL) run by Dragon Capital, the investment fund on January 19 owned $43 million worth of Vietjet shares. Besides VEIL, HCM City Securities Corp (HSC) also spent VND134.5 billion to buy 1.6 million of the carrier’s shares.

Shareholders of Vietjet Air have also approved the company’s proposal to issue more than 22.3 million shares to the Hướng Dương Sunny Investment Co. Ltd in the first quarter of 2017 at a price of VND84,600 per share.

The share issuance will increase the aviation company’s charter capital to VND3.22 trillion.

In 2016, Vietjet received a net revenue of more than VND27.5 trillion, a year-on-year increase of 39 per cent from 2015. The figure includes an amount of VND15.5 trillion from passenger transportation and related activities, and an amount of VND11.7 trillion from transferring and renting of planes.

The company’s combined pre-tax profit reached VND2.4 trillion. The post-tax profit for the parent company’s shareholders was VND2.29 trillion, equal to earnings of VND8,726 per share.

Vietjet has targetted a profit of nearly VND3.4 trillion in 2017. It also plans to pay a yearly dividend of 50 per cent for the period between 2017 and 2019, including 30 per cent dividend to be paid in cash. 

VNS