Vietjet yesterday became the first airline to be listed on the Ho Chi Minh City Stock Exchange (HOSE), and will now join the ranks of VN 30, Vietnam’s biggest publicly-traded companies in terms of market capitalisation.
Vietjet has a chartered capital of three trillion dong (US$131.8 milion), or 90,000 dong per share. That would mean its capitalisation would stand at 27 trillion dong (equivalent to US$1.2 billion), accounting for 1.5 per cent of HOSE capitalisation as of February 15, 2017.
Vietjet's Nguyen Thị Phương Thao (fifth from left) marking the airline's listing, witnessed by State Securities Commission of Vietnam's Vu Bang (second from right) and Vietjet's Nguyen Thanh Ha (fourth from right)
As a result of being hosted on HOSE, Vietjet will contribute to raise market capitalisation, offering immediate opportunities for local and foreign investors.
Vietjet is the first Vietnamese company to have completed an IPO that meets international standards and practices (Reg S). BNP Paribas, Deutsche Bank, JP Morgan are the IPO's foreign joint global consultants.
Twenty-four international investors are subscribed to Vietjet's offering, including Singapore sovereign fund GIC, Wellington, Morgan Stanley, Dragon Capital and VinaCapital.
According to 2016 statistics, Vietnam’s aviation transportation market grew 29 per cent between 2012 and 2016, and the rate of customers using airplanes as their means of transportation increased from 0.5 per cent in 2012 to 0.8 per cent in 2016.
Vietjet, the first privately-owned commercial airline in Vietnam, had started to generate profits in its second year of operations. Its revenue in 2016 was 27.5 trillion dong with a net profit of 2.4 trillion dong, with an earnings per share of 8,762 dong.