VietJet Air expects to raise $800m from IPO

Visual from the company website

Vietnam-based low-cost airline VietJet Air expects to raise $800 million from its initial public offering (IPO) this year, the Wall Street Journal (WSJ) reported.

Luu Duc Khanh, CEO of VietJet, was reported saying that the company is planning to launch the IPO sometime during the end of this year. However, he did not reveal the exact time or the volume of shares to be offered.

He also stated that the proceeds from the IPO would be used to buy more planes for the carrier.

The national carrier Vietnam Airlines conducted its IPO last November, raising almost $52 million by offloading a 3.48 per cent stake.

Earlier in October, Bangkok Airways raised $402 million in an IPO, while “several others, including the Indonesian affiliate of AirAsia Bhd, the biggest budget airline in Southeast Asia, and Indonesia’s Lion Air, have said they are considering IPOs,” WSJ reported.

VietJet, Vietnam’s first private airline fleet that was launched in 2011, currently has 20 Airbus A320 crafts and expects to get nine more. In addition, the company plans to rent several aircrafts to accommodate the the two-digit growth in the volume of Vietnamese passengers.

According to Khanh, VietJet Air is still focused on the domestic market but might look at future expansion to countries like China, Japan and Taiwan.

Last year, the budget carrier transported six million passengers, growing nearly 100 per cent compared to the figure of 2013. The CEO expects the company to double the rate of passengers this year, as well.

Although, it was expecting to turn profitable three years after the first commercial flight, VietJet Air announced a gain of VND120 billion ($5.6 million) barely eight months after launch of operations.

In the first seven months of 2014, the carrier achieved a total revenue of VND4.58 trillion ($215 million).

Related stories:

Vietnam’s $1.8b airport operator ACV plans IPO

Vietnam to launch 292 state co IPOs in 2015

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. 
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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.