Vietjet seeks to offer shares for $200 mln in proceeds

By Trang Nguyen
Tue, September 13, 2022 | 5:05 pm GTM+7

Vietnamese budget carrier Vietjet Air plans to issue 34.8 million new shares to professional securities investors, equivalent to 6.43% of the total number of outstanding shares.

The agreed offering price is VND135,000 ($5.73), equivalent to VND4,698 billion ($199.5 million) in proceeds.

A Vietjet plane. Photo courtesy of the carrier.

A Vietjet plane. Photo courtesy of the carrier.

Of the proceeds, VND1,136 billion ($48.25 million) would be spent on investment in aircraft for lease; VND1,242 billion on investment in engines for lease and equipment for aircraft repair; the remaining VND2,320 billion for supplementing liquidity and working capital.

Currently, the carrier has a charter capital of VND5,416 billion and can increase the scale to a maximum of VND5,764 billion ($244.8 million) after the above issuance plan.

It has not announced the investors' identity, but the selection criteria are economic organizations operating in the fields of financial technology, logistics, and aviation services that are able to provide financial support to Vietjet.

Shares successfully offered will be restricted to transfer within one year. The issuance time is expected to be in 2022 and 2023 after being approved by the State Securities Commission.

Vietjet also announced that the current foreign ownership rate is 16.82%, while the maximum allowed rate is 34%. It plans to temporarily fix the maximum foreign ownership ratio at 30% until the issuance.

The carrier chose Viet Capital Securities JSC as a consultant for the private placement of shares, for registration at the Vietnam Securities Depository (VSD) and listing on the Ho Chi Minh City Stock Exchange (HoSE) for the shares successfully offered.

Vietjet recorded an after-tax profit of VND145 billion ($6.18 million) in the first half of the year, up 19% year-on-year as domestic travel demand recovered.

The firm’s consolidated revenues rose 111% to VND15,934 billion ($679 million), according to its financial statement.

Air transportation fetched revenues and after-tax profit of VND14,898 billion ($635 million) and VND80.33 billion ($3.42 million), up 197% và 135% year-on-year, respectively.

The carrier said demand on domestic air routes surged 30% in the first six months over the same period in pre-pandemic 2019.

It operated nearly 33,000 flights in the period, transporting six million passengers, up 135% and 200% year-on-year, respectively. The volume of goods transported reached more than 11,000 tons.

The Vietjet Aviation Joint Stock Company is listed on the HoSE as VJC. It closed the trading morning session on Sept. 13 at VND117,900 ($5.01).

Comments (0)
  • Read More
Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomed 1.87 million foreign visitors in the first nine months of the year, up 16.4 times year-on-year, with South Korea and the U.S. leading the pack.

Travel - Sat, October 1, 2022 | 8:26 pm GTM+7

US firm Molex expands Vietnam facility with solar panel installation

US firm Molex expands Vietnam facility with solar panel installation

Molex, a U.S. manufacturer of electronic, electrical and fiber optic connectivity systems, has expanded its manufacturing facility in Hanoi with solar panel installation.

Industries - Sat, October 1, 2022 | 6:46 pm GTM+7

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.

Energy - Sat, October 1, 2022 | 3:54 pm GTM+7

Danish firm Spectre opens third Vietnam factory in An Giang

Danish firm Spectre opens third Vietnam factory in An Giang

Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.

Industries - Sat, October 1, 2022 | 3:06 pm GTM+7

Foreign firm accountant gets death sentence in $9.6 mln corruption case

Foreign firm accountant gets death sentence in $9.6 mln corruption case

A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.

Society - Sat, October 1, 2022 | 2:43 pm GTM+7

Vietnam’s nation brand valued at $431 billion

Vietnam’s nation brand valued at $431 billion

Vietnam has seen the third biggest brand value gain over the course of the pandemic in absolute terms, up $184 billion year-on-year to $431 billion in 2022, says London-based Brand Finance.

Economy - Sat, October 1, 2022 | 11:22 am GTM+7

Jail term reduced to 3 years for former deputy health minister

Jail term reduced to 3 years for former deputy health minister

An appeal court in Hanoi has reduced the jail term for former deputy minister of health Truong Quoc Cuong to three years, from the four years ruled by an instance court in May.

Society - Sat, October 1, 2022 | 11:05 am GTM+7

Fever cools, townhouse, villa segment turns lethargic in major cities

Fever cools, townhouse, villa segment turns lethargic in major cities

Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.

Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.

Energy - Fri, September 30, 2022 | 9:24 pm GTM+7

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy has completed commissioning of its Vietnam rooftop solar pilot project, the UK-based energy firm announced Friday.

Energy - Fri, September 30, 2022 | 6:59 pm GTM+7

VN-Index pulls one back after five losing sessions

VN-Index pulls one back after five losing sessions

Vietnam’s benchmark VN-Index reversed a consecutive five session decline with a six-point gain Friday to close at 1,132 points.

Finance - Fri, September 30, 2022 | 6:30 pm GTM+7

Vietnam’s GDP growth to keep driving southern industrial property market: report

Vietnam’s GDP growth to keep driving southern industrial property market: report

The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.

Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7

Vietnam needs bonded warehouses for US cotton imports

Vietnam needs bonded warehouses for US cotton imports

Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.

Industries - Fri, September 30, 2022 | 3:19 pm GTM+7

Thai giant Central Retail eyes mall investment in Binh Thuan

Thai giant Central Retail eyes mall investment in Binh Thuan

Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.

Industries - Fri, September 30, 2022 | 3:05 pm GTM+7

Vietnam Q3 unemployment lowest in 3 years

Vietnam Q3 unemployment lowest in 3 years

Vietnam's unemployment rate dropped 1.7 percentage points year-on-year to 2.28% in the third quarter, the lowest since 2020.

Economy - Fri, September 30, 2022 | 11:38 am GTM+7

Looking up HCMC’s highest high-end homes

Looking up HCMC’s highest high-end homes

Housing projects like The River Thu Thiem, Lumière Riverside, Grand Marina Saigon, and The Opera Residence are home to the most expensive penthouses in Ho Chi Minh City.

Real Estate - Fri, September 30, 2022 | 9:36 am GTM+7