An airplane of VietJet Air. Photo: Zing
VietJet Aviation JSC (VJC), the operator of budget carrier VietJet Air
, will ask for shareholders’ approval to raise the foreign ownership limit (FOL) in it to 49% from the stipulated cap of 30% currently.
The relaxation of the FOL will lead to increased market liquidity of the airline’s stock as well as open up opportunities for further foreign investment, VJS said in a document prepared for its upcoming general meeting this month.
Once the proposal is approved, the board will work with relevant authorities for the increasing of the FOL.
Foreign holding in VJC now stands at a combined 26%. Singaporean sovereign wealth fund GIC is the largest overseas stakeholder with 5.1%.
The firm plans to issue 129 million shares for dividend payment corresponding to 2016. As a result, its registered capital will increase to 4.51 trillion dong ($199 million).
As of end-2016, VJC’s total assets reached 20.06 trillion dong ($884 million), up 67% from a year earlier. It had 1.7 trillion dong in retained profit.