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Vietjet set to list on HoSE

Released at: 21:00, 10/02/2017

Vietjet set to list on HoSE

Budget carrier secures approval to list 300 million shares on Ho Chi Minh City Stock Exchange.

by Quynh Nguyen

Vietjet Air has gained approval to list on the Ho Chi Minh City Stock Exchange (HoSE), with stock code VJC. 

The budget carrier registered to list 300 million shares, equivalent to VND3 trillion ($167 million). The offering price has not been announced. It deposited the shares at the Vietnam Securities Depository on January 25.

Vietjet’s attracted a lot of investor attention when it announced its listing on the stock market. A total of 23 overseas investors bought 66.5 million shares, equivalent to about 14 per cent of Vietjet, during a pre-listing stake sale in December 2016, billionaire founder Ms. Nguyen Thi Phuong Thao told Bloomberg.

The budget carrier is valued at $1.2 billion by its advisers, and it’s also considering a foreign listing and overseas bonds issuance, she said.

Vietnam Enterprise Investments Limited (VEIL), an investment fund under Dragon Capital, owned Vietjet shares as at January 1 valued at $43 million. HCM City Securities Corp (HSC) also spent VND134.5 billion to purchase 1.6 million of the carrier’s shares.

Shareholders have also approved the company’s proposal to issue more than 22.3 million shares to the Huong Duong Sunny Investment Co Ltd during 2017 at a price of VND84,600 ($3.76) per share.

Vietjet forecasts 2017 profit to rise 30 per cent from $101.8 million in 2016, Ms. Thao was quoted as saying. 

Vietjet surpassed Vietnam Airlines as the leader in domestic passenger transport during the Tet holidays, according to the Civil Aviation Authority of Vietnam.

Over the six-day holiday, Vietnam Airlines transported 175,146 passengers while Vietjet transported 209,179, for shares of 35 per cent and 42 per cent. Jetstar Pacific held 20.7 per cent and Vasco 2.3 per cent.

The carrier will continue to expand its domestic network this year 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.

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