Vietnam’s VietJet Aviation said on Tuesday it plans to sell a stake of up to 15% via a private placement and raise $300 million through an international bond sale to boost the budget airline’s financial capacity when travel markets revive.
The company’s shareholders had approved the plan at a meeting earlier on Tuesday, VietJet said in a statement.
The fund raising is part of its efforts to “ensure that VietJet has sufficient resources for safe and effective development when the market recovers,” the company said.
It said shareholders also approved a plan to sell 10 million new shares to its staff, without giving a time frame.
VietJet, which has a market capitalisation of $2.82 billion, said it is targeting a 20% rise in revenue this year to 21.9 trillion dong ($951.35 million).
The company reported a net profit of 68 billion dong last year.
VietJet President and CEO Nguyen Thi Phuong Thao said in an interview earlier this year the airline planned to expand its investment in new aircraft and technical facilities this year.