Vietjet valued $1.2b

20-Dec-2016 Intellasia | Vneconomictimes | 6:00 AM Print This Post

Upcoming IPO of 14.9 percent of shares will bring in $200 million, according to Reuters, which would put the carrier’s value in excess of $1 billion.

Vietjet Air plans to sell 44.7 million shares at its initial public offering (IPO) scheduled to take place this month, which will value the budget carrier at $1.2 billion, according to Reuters.

The 44.7 million shares is equivalent to 14.9 per cent of its existing charter capital of $132 million and will earn it $200 million at a share price of VND84,400 ($3.8) for organisations and VND86,500 ($4) for individuals.

“We are preparing to conduct the IPO,” a representative from Vietjet Air told VET, but gave no further details about the number of shares or the date of the IPO. The total capital raised from the IPO, Reuters noted, will be VND3.8 trillion ($170 million), which would consequently put its value at $1.2 billion.

BNP Paribas, Deutsche Bank, JP Morgan and VietCapital Securities are the IPO’s joint global coordinators. Vietjet’s shares will be listed on the Ho Chi Minh Stock Exchange (HOSE) on February 23, Reuters said.

Other details remain unknown. According to a report from a major securities company, however, Vietjet’s profit in the first nine months of this year was nearly VND2 trillion ($88 million), up 70 per cent year-on-year.

Last year it announced consolidated revenue of VND19.8 trillion ($871.2 million), up 128 per cent year-on-year, and net profit at VND1.17 trillion ($51.4 million), a 225 per cent increase.

It carried 9.3 million passengers last year and has placed orders this year for 100 Boeing 737 and 20 Airbus A321 aircraft. It posted year-on-year growth of 205 per cent in 2015, with revenue of VND10.9 trillion ($490.7 million), fulfilling its annual target.

It targets transporting 15 million passengers this year with an on time performance (OTP) rate of 85 per cent and growth of 60 per cent year-on-year.

The carrier will continue to expand its domestic network and strengthen its international operations while improving service quality, especially its SkyBoss and in-flight services. It also aims to achieve a passenger satisfaction rate of 99 per cent and a return-customer rate of 95 per cent.

Vietjet Air currently boasts a fleet of 40 aircraft, including A320s and A321s, and operates 350 flights each day. It has opened 53 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, Malaysia, China and Myanmar and has carried nearly 30 million passengers to date.


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