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Banking & Finance

Vietcombank to offload 7.6mn Vietnam Airlines shares

Released at: 09:26, 25/01/2018

Vietcombank to offload 7.6mn Vietnam Airlines shares

Photo from newsvietuc.com

Bank to cut holding from 1.83% to 1.21% after January 24 to February 22 sale.

by Ngoc Lan

Vietcombank has registered to sell 7.6 million shares in Vietnam Airlines from January 24 to February 22, according to an announcement on its website.

If the sale is successful, Vietcombank will reduce its holdings in the national flag carrier from 22.4 million shares, or 1.83 per cent, to 14.8 million shares, or 1.21 per cent.

Vietcombank currently holds more than 22.4 million shares, which were purchased at Vietnam Airlines’ IPO in 2014 at a price of VND22,300 ($1) per share.

The airlines’ shares increased sharply on January 22, from VND35,280 ($1.5) to VND64,200 ($2.7); its highest point since the IPO. Vietcombank is therefore expected to bring in VND488 billion ($21.6 million) from the sale.

Vietnam Airlines’ total revenue in 2017 is estimated at VND88.4 trillion ($3.9 billion), with pre-tax profit at a record VND2.8 trillion ($124.4 million), surpassing the annual plan by 72 per cent and 8.3 per cent higher than in 2016.

It is expected to list on the Ho Chi Minh Stock Exchange (HoSE) in the second quarter of 2018 and will continue to implement its plan to issue additional shares to existing shareholders to increase charter capital and reduce State ownership.

Vietcombank reported pre-tax profit of more than VND11 trillion ($482.5 million) for 2017, an increase of 32.9 per cent against 2016 and 16 per cent higher than targeted.

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