Vietnam Airlines’ IPO set for November

Vietnam Airlines is set to offer a five per cent equity stake to public investors during its Initial Public Offering (IPO) scheduled for November of this year.


Vietnam Airlines’ IPO set for November


Vietnam Airlines is set to offer a five per cent equity stake to public investors during its Initial Public Offering (IPO) scheduled for November of this year. Airline president and chief executive, Pham Ngoc Minh, told the Wall Street Journal that his company is looking to raise VND1.5trillion (US$70.6 million) during the ITO to help restart its longhaul expansion plans.

In addition to the five per cent offering, the airline is also in talks with several potential strategic investors, among them an undisclosed Japanese firm, to sell a 20 per cent stake in the company. The airline could sell stakes to one or more strategic investors totalling 20 per cent, Pham said.

Should the sale prove successful, the Vietnamese government will retain a 75 per cent stake in the carrier, but does plan to gradually reduce that shareholding thereafter. The sale is seen as a litmus test for Hanoi’s plan to accelerate the overhaul of over 400 underperforming, state-owned companies to spur economic growth.