VietJet Air Set to Raise $170 Million from IPO

Tuan Minh

14:46 15/12/2016

BizLIVE - VietJet Air is poised to raise some $170 million from an IPO that will value it at $1.2 billion, according to Reuters.

VietJet Air Set to Raise $170 Million from IPO

VietJet Air's IPO shares have been oversubscribed. Photo: GeekWire

Vietnamese no-frills carrier VietJet Air expects to raise about $170 million at an initial public offering (IPO) that will give it a price tag of $1.2 billion, Reuters cited people familiar with the deal as saying.
The airline will offer 44.7 million shares at probably 84,400 dong ($3.72) each for institutional buyers and 86,500 dong ($3.81) each for retail investors, the sources said.
The offer was oversubscribed and an overallotment option would not be exercised, the people told Reuters.
BNP Paribas, Deutsche Bank, JP Morgan and Viet Capital are joint global coordinators for the IPO.
VietJet will list its shares on the Ho Chi Minh Stock Exchange on February 23. It has also planned overseas listing, either in Singapore or Hong Kong.
The low-cost carrier held a 41.4% share of the domestic aviation market in the first half of this year, second only to state-controlled Vietnam Airlines, which commanded a 42.5% market share. VietJet is likely to surpass its direct rival to become the country’s largest airline by the end of this year.
To accommodate its fast growth, VietJet has placed orders worth billions of USD to acquire aircraft manufactured by Boeing and Airbus.
The airline’s IPO is the latest in a string of share sales by Vietnamese enterprises such as brewer Sabeco and dairy producer Vinamilk.
With a loosened cap on foreign ownership and more sales in the pipeline, more foreign cash is expected to flow into Vietnam stock market and market liquidity is poised to increase, which may help upgrade the country to the Emerging Market status, according to securities analysts.


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