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VNA ‘aims for Q1 2019 listing’
Posted on Monday, 03 December 2018 14:34
Vietnam Airlines (VNA) is believed to be exchanging a quotation on Hanoi’s unlisted public company market for one on the country’s mainland in the first quarter of 2019. Formerly a state-owned enterprise, the carrier claims to be the largest and the most modern fleet operator in Vietnam and, as of 31st December 2017, it had 30 dependent entities, 15 subsidiaries and five associates. VNA delivered 140,000 flights and transported about 22.00 million passengers in 2017 but is competing in an increasingly busy market against the likes of VietJet Air, FLC’s Bamboo Airways, AirAsia and Lion Air. As of 31st December 2017, consolidated revenue reached VND 84,962 billion (USD 3.64 billion) and record profit before tax totalled VND 3,155 billion. In its annual report for 2017, VNA laid out plans to complete the charter capital increase offer to current shareholders and “transfer rights to subscribe additionally issued shares of state-owned shareholders”. The carrier added it would also “perform procedures to change share listing into Ho Chi Minh City Stock Exchange (HOSE) in order to serve the best interests of shareholders”. In the latest news update, the Financial Times (FT) reported chief executive Duong Tri Thanh is working on meeting plans to debut in Q1 2019. Cited by the newspaper, Thanh noted management “want to do this”, though the government has the final say on the matter. Proceeds raised should boost the airline’s profile among overseas institutional investors and help position VNA to better participate in the increasingly competitive sector. Tony Foster, partner with the law firm Freshfields in Hanoi, told the FT: “This would be a major Vietnamese company joining the stock exchange, which would have interest for international investors. “[It] would potentially enable VNA to raise funds more easily to compete with the likes of VietJet and Bamboo.” Cited by the FT, Fiachra MacCana, head of research with Ho Chi Minh City Securities noted: “VietJet has shown that in a high-growth market, airline shares are quite sexy.” “As VNA becomes more commercial to win back market share, there’s no reason why their numbers shouldn’t improve dramatically.” © Zephus Ltd