Budget airline Vietjet gets nod to list 300m shares on HCMC bourse

The Ho Chi Minh City Stock Exchange (HOSE) has approved a proposal allowing Vietnam’s first private airliner Vietjet to list on the bourse, after the company said it would implement a domestic IPO before any overseas listing.

Vietjet will trade its total outstanding shares of 300 million units on HOSE bourse, according to the February 7 notice.

Vietnam has two exchanges for listed stocks, Hanoi Stock Exchange and HOSE bourse – home to blue chips like Sabeco, Vinamilk and Vietcombank.

HOSE bourse did not elaborate on Vietjet’s listing price and date. The scrip will be coded VJC. Meanwhile, sources said, Vietjet will list in the fourth week of this month.

In a recent development, the 300 million shares were deposited at the Vietnam Depository Centre on January 25.

The budget carrier has also proposed to sell almost 22.4 million new shares, or a 7.46 per cent stake, to Huong Duong Sunny Investment Co Ltd, a newly established company by Nguyen Thi Phuong Thao, CEO of Vietjet.

The transaction will increase Vietjet’s charter capital from the current VND3 trillion to more than VND3.22 trillion.

This new issuance will follow its pre-listing offer, which was a sale of 44.8 million shares to institutional investors, including Morgan Stanley, GIC, VinaCapital and Dragon Capital.

Shares of Vietjet owned by Dragon Capital’s Vietnam Enterprise Investments Limited represent 4.17 per cent (or $43.2 million) of the fund’s net asset value by January 25, the fund said in a performance report dated February 7.

Vietjet is also among the top 10 holdings of Vietnam Enterprise Investments.

The investment fund has exposure in Vinamilk, retailer Mobile World and steelmaker Hoa Phat, and has recently added to Vietjet, Airports Corporation of Vietnam and real estate company Novaland to its portfolio.

Ho Chi Minh City Securities JSC, Vietnam’s leading brokerage house, has also revealed it had invested VND134.5 billion in Vietjet, accounting for 44 per cent of its own investment portfolio as of 31 December 2016.

The $1.2 billion airliner was previously reported to have sold around 24 per cent (of its earlier charter capital worth VND2 trillion) to 26 foreign institutions. The value was not disclosed but sources said the buyers purchased at VND84,400 per share.

In addition to the offering to institutional investors, Vietjet was also selling 3.5 million shares to individual buyers, the company had said.

This year, Vietjet expects its profit to jump 30 per cent on listing and plans to resume the overseas IPO intention.

Also read:

VietJet reconsiders international IPO, forecasts 30% profit ahead of listing in Vietnam

Budget carrier Vietjet sells over 24% stake to 26 foreign investors

Vietjet mulls Feb 17 listing after 15% placement to institutional investors

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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.