Vietnam Airlines to issue 191.1mn shares

The Ministry of Transport has proposed the Ministry of Finance consider its capital increase plan. The 191.1 million shares are expected to bring in VND1.6 trillion ($70.4 million).

Each shareholder who owns 100 shares will be allowed to buy an additional 15.5753 shares. The issue will be made after approval from the State Securities Commission, expected in the first quarter of 2017.

2015 marked a major milestone for the airline, becoming a joint stock company, with the close relationship between the airline and shareholders having a major influence on and playing a key role in its sustainable development.

Japan’s largest airline group, ANA Holdings, finalized a deal on May 28 to become a shareholder. Valued at $109 million, the shares represent an 8.771 per cent holding. The deal was signed in the presence of Prime Minister Nguyen Xuan Phuc and Japanese Prime Minister Shinzo Abe in Tokyo.

Vietnam Airlines has announced recently that it will trade on the Unlisted Public Company (UPCoM) market from December under the code HVN, with over 1.22 billion shares and a registered stock value of more than VND12.2 trillion ($549 million).

The total value of VND12.2 trillion ($549 million) is equal to its registered capital and the 1.22 billion shares have a starting price of VND10,000 ($0.45) per share.

Vietnam Airlines’ fleet now stands at 89 aircraft, including two new generation aircraft - the Airbus A350 and the Boeing 787. Its network covers 29 international and 20 domestic destinations, and it conducts 66 flights a week to Narita and Haneda Airports in Tokyo, Chubu Airport in Nagoya, Kansai Airport in Osaka, and Fukuoka Airport in Japan.

It earned VND43.3 trillion ($1.9 billion) in revenue in the first nine months of this year, with pre-tax profit of VND1.7 trillion ($76.3 million), a four-fold increase year-on-year and 10.6 per cent higher than the 2016 plan. It also contributed VND3.9 trillion ($174 million) to the State budget, up 24 per cent year-on-year.

The national flag carrier conducted over 106,000 domestic and international flights during the nine months, or 10.5 per cent more than in the same period last year. It carried 14.9 million passengers, up 16.4 per cent year-on-year, with domestic passengers up 13 per cent. Cargo transported totaled 193,000 tons, up 21 per cent.

Consolidated revenue stood at VND52.5 trillion ($2.3 billion), an increase of 6 per cent year-on-year, while consolidated pre-tax profit reached VND2.6 trillion ($116.5 million).