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).