Foreign Investors Bet on VietJet’s Growth

Tuan Minh

10:20 03/01/2017

BizLIVE - A large number of overseas investors have bought VietJet Air shares before the airline goes public.

Foreign Investors Bet on VietJet’s Growth

Foreign investors are keen on VietJet Air's shares. Photo: Internet

Low-cost carrier VietJet Air is selling a combined 73 million shares, or a 24.36% stake, to as many as 26 foreign investors after the airline raised its registered capital by 50% to three trillion dong ($132.2 million) last month, local media reported.
Of the amount, VietJet transferred 6.57 million shares in mid-December 2016 to British Virgin Island-incorporated Wareham Group Limited, Cayman Island-incorporated Dragon Capital Markets Limited and Ireland’s DC Developing Markets Strategies Public Company, according to the Dau Tu (Investment) newspaper.
The value of the transaction was not disclosed. However, it is said to be valued between 65.66 billion dong ($2.9 million) and 788 billion dong ($34.7 million), according to the newspaper.
The carrier has secured approval from the Ministry of Transport to unload another 22.17% stake to 23 overseas investors.
VietJet Air, dubbed as Vietnam’s bikini-clad carrier, last month offered 44.8 million shares to institutional investors.
The buyers, including Morgan Stanley, GIC, Dragon Capital, Mirae and VinaCapital, bought the shares at 84,400 dong ($3.72) each, valuing the carrier at $1.2 billion. The shares were 1.8 times oversubscribed.
The budget carrier will offer another 3.5 million shares to retail investors at 86,500 dong ($3.81) apiece each.
After the share sales, VietJet will list its shares on the Ho Chi Minh Stock Exchange in the fourth week of February this year, said Phung Thi Tan Thanh, deputy director of investment banking at Viet Capital Securities, one of the four advisors to the IPO, alongside BNP Paribas, Deutsche Bank and JP Morgan.
VietJet now operates 42 planes on 57 air routes, including 37 to domestic destinations and 20 overseas routes.