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Vietnam Airlines may list in Q2

Released at: 21:34, 28/12/2017

Vietnam Airlines may list in Q2

photo from nld.com.vn

Report from national flag carrier notes possible listing in second quarter of 2018.

by Quang Huy

In a report sent to authorities, Vietnam Airlines outlined a roadmap for the State to reduce its shareholding to 51 per cent of charter capital and a possible timing for its listing during the second quarter of 2018.

Wrapping up the results of restructuring at the carrier from 2013 to 2016 and with plans for 2017 to 2020, the report suggests that State divestment be conducted in two phases over the next three years.

During the 2017-2018 period, Vietnam Airlines would increase its charter capital by issuing an additional 191.191 million shares to existing shareholders and transferring the right to purchase 57.9 million shares held by the State. If successful, the national flag carrier would raise its charter capital and owner’s equity to VND14 trillion ($617.4 million) and VND16 trillion ($705.6 million), respectively, and also reduce the State holding to 82.1 per cent.

During the 2018-2019 period, it will offer from 10-20 per cent for sale to again increase charter capital and bring the State’s holding down to 60-65 per cent.

In addition to Vietnam Airlines’ plan to increase its charter capital, the State will also continue to sell its remaining shares, equal to 10-15 per cent of charter capital.

If the divestment is successful, the State will hold a 52 per cent stake, which would be in compliance with Prime Ministerial Decision No. 1232 dated August 17, 2017 approving a list of State-owned enterprises to be divested from during 2017-2020.

CEO of Vietnam Airlines Mr. Duong Tri Thanh said that as soon as the increase in charter capital in the first phase is completed, the corporation will prepare its listing on the Ho Chi Minh Stock Exchange (HoSE) during the second quarter of 2018.

After selling an 8.8 per cent stake to ANA Holdings Inc. last year for $108 million, Vietnam Airlines also completed a sale of a further 4.1 per cent stake last month. Japan’s largest airline, which is limited by Japanese regulation to a 10 per cent stake in Vietnam’s national flag carrier, did not participate in the stake sale, a spokesperson from ANA Holdings told VET.

Vietnam Airlines expects the number of international air passengers coming to Vietnam to be around 32 million in 2018, a 12 per cent increase from this year, Mr. Thanh said in an interview last month. It forecasts the number of domestic travelers by air to rise 12 per cent next year to 35 million, as economic growth makes travel affordable for more Vietnamese.

Vietnam Airlines projects 2018 revenue jumping about 13 per cent from this year, while pre-tax profit may be “at least” VND1.6 trillion ($70 million), Mr. Thanh said. He predicted that the airline would see about 10 per cent passenger growth next year, from 22 million in this year.

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