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.
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.