After IPO, Vietnam Airlines plans 21.5% divestment

By Nguyen Hoang Long

November 19, 2014

After successfully raising $52 million (VND 1.11 trillion) through an IPO, Vietnam Airlines is planning to divest another 21.5% stake in the company.

The company, which offered 3.5% stake in a recent IPO, is planning to offer another 282 million shares (20%) to three foreign strategic investors, in the near future. Another 20.8 million shares (1.5%) will be offered to the employees (ESOPs) while the remaining 75% stake will stay with the government.

The airlines expects to raise more than $671.4 million (VND 14.1 trillion) in charter capital to facilitate the divestment. This is part of the company’s two-year strategy, through which, it plans on further raising the company’s charter capital by VND 8.5 trillion (increasing the total to VND 22.6 trillion) and reducing the State ownership to 65%.

Vietnam Airlines raised around $52 million (VND 1.11 trillion) in its initial public offering (IPO); of which, 48.3 million shares (equivalent of 99%) were sold to two strategic investors Vietcombank (VCB) and Techcombank.

As mentioned in previous article, 1,608 investors registered for more than 49 million shares of Vietnam Airlines. On the trading day, the highest bid was made by BIDV Securities Company (BSC) at VND 223,000/share, almost 10x of the starting price, for 100 shares. Average price was recorded at VND 22,307/share.

Vietcombank Securities Limited Company (VCBS) registered and purchased 22,562,900 shares while Techcombank also successfully bought 25,760,000 shares.  As a result, Vietnam Airlines sold all 49 million shares that represent 3.48% stake in the company.

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
APPLY NOW