VietJet Air is dubbed as bikini-clad carrier as its attendants usually wear bikinis on flights to beach destinations. Photo: Internet
Vietnam’s sole privately-run carrier VietJet Air
will conduct a long-awaited initial public offering (IPO) next month, in a move to raise funds for its ambitious expansion plans.
VietJet will pitch its IPO through Nov. 30 and will start taking orders for the deal between Dec. 1 and 12, Reuters reported, citing people familiar with the issue.
The airline, valued by analysts at between $1 billion and $1.4 billion, expects to rake in $200 million from selling a 20% stake during the IPO.
VietJet Managing Director Luu Duc Khanh told the Nikkei Asian Review in last month that the carrier had carried out roadshows overseas, and was preparing for another at home before debuting on the Ho Chi Minh Stock Exchange (HOSE
) by the year’s end.
In compliance with the Vietnamese legislation, the carrier will list its shares on a local stock exchange before going overseas, either Singapore or Hong Kong, Khanh noted.
Coming into operation in December 2007, Vietnam’s first budget airline has flown some 30 million passengers and is operating 37 routes in Vietnam. It competes fiercely with state-run Vietnam Airlines for domestic market share.
Separately, Vietnam Airlines, which launched an IPO two years ago, will review the ownership of its shareholders by November 30 in preparation for share listing on the UPCoM
market, run by the Hanoi Stock Exchange.