Budget carrier Vietjet Air has registered to list 300 shares on the Ho Chi Minh City Stock Exchange (HoSE).

HoSE has announced that it received full registration documents from Vietjet Air on January 16.

Reuters reported previously that the airline would conduct an initial public offering (IPO) worth $200 million at the end of 2016 with 44.7 million shares on offer at an IPO.  

The 44.7 million shares are equivalent to 14.9 per cent of its existing charter capital of $132 million and will earn it $200 million at a share price of VND84,400 ($3.8) for organizations and VND86,500 ($4) for individuals.

The total capital raised from the IPO, Reuters noted, will be VND3.8 trillion ($170 million), which would consequently put its value at $1.2 billion.

The airline’s CEO Nguyen Thi Phuong Thao told local media recently that pre-tax profit reached $101.9 million in 2016, up 91.6 per cent. The airline expects net revenue to increase 30 per cent this year.  

In 2016 it placed orders for 100 Boeing 737 and 20 Airbus A321 aircraft. It posted year-on-year growth of 205 per cent in 2015, with revenue of VND10.9 trillion ($490.7 million), fulfilling its annual target. 

The budget carrier targeted transporting 15 million passengers in 2016 with an on time performance (OTP) rate of 85 per cent and growth of 60 per cent year-on-year. Its revenue was expected to double compared to the VND11 trillion ($484 million) recorded in 2015. 

The airline will continue to expand its domestic network and strengthen its international operations while improving service quality, especially its SkyBoss and in-flight services. It also aims to achieve a passenger satisfaction rate of 99 per cent and a return-customer rate of 95 per cent.

Vietjet Air currently boasts a fleet of 40 aircraft, including A320s and A321s, and operates 350 flights each day. It has opened 53 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, Malaysia, China and Myanmar and has carried nearly 30 million passengers to date.

Looking ahead, Vietjet plans to expand its network across the Asia-Pacific region and has signed agreements to purchase more brand-new modern aircraft.

VN Economic Times