Vietnam Airlines approved to list 1.4 billion shares on HSX

16:31 | 16/04/2019
The Ho Chi Minh City Stock Exchange (HSX) has officially approved Vietnam Airlines to list 1.4 billion shares with the code HVN and the valuation of VND10,000 apiece.
vietnam airlines approved to list 14 billion shares on hsx
Vietnam Airlines will list 1.4 billion shares on HSX

Thus, the 1.4 billion HVN shares will be worth VND14 trillion ($608.7 million).

The listing takes place in the context of increasing competition in the Vietnamese aviation market.

Vietnam Airlines launched its initial public offering (IPO) in 2014. The largest shareholder at the time was the Ministry of Transport with 86 per cent of the capital. In 2016, Japan’s biggest airline ANA Holdings bought an 8.8 per cent stake in Vietnam Airlines for $108 million.

The corporation is currently listed on the UPCoM under the code HVN.

At the end of 2018, Vietnam Airlines reported a record revenue of VND96.8 trillion ($4.2 billion), up 17 per cent on-year. The pre-tax profit was VND3.24 trillion ($140.9 million), up 34 per cent compared to the initial plan.

The corporation targets acquiring VND112 trillion ($4.9 billion) in consolidated revenue, up 15 per cent on-year. Besides, it expects to handle 25 million passengers.

It plans to buy an additional 22 airplanes to increase its fleet size to 112 units.

In February, Vietnam received a Category 1 aviation safety rating from the US Department of Transportation’s Federal Aviation Administration (FAA), giving airlines the opportunity to fly to the US and code-share with American carriers.

This milestone will help Vietnam Airlines to realise the plans to set up a straight flight to the US, setting the stage for direct services between the two countries.

Vietnam Airlines currently has no non-stop flights to the US, despite the large demand by tourists as well as overseas Vietnamese visiting friends and relatives. Therefore, customers who want to fly from Vietnam to the US and vice versa need to transit at major airports in Asian cities like Hong Kong, Seoul or Tokyo.

Based on MasterCMS Ultimate Edition Ver 2.8 2018