Vietjet’s $170m IPO is Vietnam’s biggest, first globally marketed offer

Vietjet’s $170-million IPO, which attracted large buyers like BNP Paribas, Deutsche Bank and JP Morgan, is Vietnam’s biggest and first internationally marketed initial public offering, according to Milbank, Tweed and Hadley & McCloy LLP, the placement agent for the transaction.

The low-cost airline sold 44.78 million shares to both international and local institutional investors for approximately $170 million, in a deal that closed in late 2016.

Foreign investors own 24.4 per cent stake in Vietjet as of January 12, the Vietnamese private carrier said in a brochure.

Following the IPO, Vietjet proposes to list its shares on the Ho Chi Minh City Stock Exchange at the reference price of VND90,000 ($3.9) per share.

“The listing debut will go as planned on February 28,” a spokeperson at Vietjet confirmed to DEALSTREETASIA.

Meanwhile, Milbank revealed that a private placement of shares by the VietJet’s founder and chairwoman, Nguyen Thi Phuong Thao, is scheduled to be followed by a top-up subscription after listing.

“The success of the VietJet IPO is an important milestone in the development of Vietnam’s capital markets,” James Grandolfo, Milbank’s capital markets partner, commented in a statement.

Vietjet will use the funds to expand its international routes and enlarge its fleet, he added.

Milbank was also the advisor for Vietjet in its 2016 transactions to purchase $11.3 billion Boeing and $2.39 billion Airbus aircraft.

Milbank advised BNP Paribas, Deutsche Bank, JP Morgan and Vietnam-based VietCapital in the IPO.

Meanwhile, other buyers include Morgan Stanley, GIC, VinaCapital and Dragon Capital.

Vietjet’s pre-listing documents show that the Singapore sovereign fund is the only foreign investor with an equity holding from 5 per cent (a threshold defined by Vietnam law to be shareholder with voting rights).

Vietjet had earlier said around 30 organisational investors had been keen on its offer, which was worth $265 million in bidding and finally sold to 26 investors.

Also read:

Vietjet $1.2b listing set for Feb 28, GIC is large shareholder

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

Singapore Reporter/s

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

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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.