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Banking & Finance

Vietnam Airlines' shares set to list on HSX

Released at: 07:47, 29/04/2019

Vietnam Airlines' shares set to list on HSX

Photo: Vietnam Airlines

May 7 listing for shares of national flag carrier, with stock code HVN.

by Ngoc Lan

Vietnam Airlines’ shares (HVN) will be officially listed on the Ho Chi Minh Stock Exchange (HSX) on May 7, with a reference price on the first trading day of VND40,600 ($1.74).

HVN shares on UPCoM were suspended on April 23. At the end of the last trading session on UpCoM, on April 22, shares stood at VND40,300 (1.72), nearly 1.5 times higher than the reference price on the first trading day on January 3, 2017 of VND28,000 ($1.2).

Along with an increase in the volume of listed stocks, the stable growth of HVN shares has helped raise Vietnam Airlines’ capitalization to over VND57 trillion ($2.5 billion).

Since moving to operate as a joint stock company in early 2015, Vietnam Airlines has achieved spectacular growth in production and business results.

In 2014, it recorded total revenue of VND69.377 trillion ($2.9 billion) and after-tax consolidated profit of VND416 billion ($17.8 million). By 2017, meanwhile, the two key indicators were VND83.553 trillion ($3.5 billion) and VND2.659 trillion ($114 million), respectively.

Consolidated revenue last year reached approximately VND100 trillion ($4.2 billion), while consolidated pre-tax profit was VND3.312 trillion ($142 million), exceeding the plan by 23.4 per cent.

Financial indicators have also improved towards sustainability and safety. In particular, the ratio of liabilities on equity (excluding sales) reached 2.58:1 at the end of 2018 and will be about 2.41:1 by the end of this year.

In the first quarter of 2019, business activities continued to see positive results, with total consolidated revenue estimated at nearly VND26 trillion ($1.1 billion) and consolidated pre-tax profit VND1.5 trillion ($64.3 million), or 45 per cent of the annual plan.

The trading of Vietnam Airlines’ shares on HSX is an important event, recognizing a new period of development and marking its long-term strategic vision and determination to constantly improve business efficiency, increase transparency, and standardize governance activities.

It also provides an opportunity for the national flag carrier to have greater access to financial investors, help increase stock liquidity, and maximize investment value for shareholders.

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