Budget carrier joins HCMC Stock Exchange on February 28.
Vietjet Air officially listed on the Ho Chi Minh City Stock Exchange (HoSE) on February 28.
The first airline in Vietnam to be listed on the stock market, Vietjet’s capitalization would stand at VND27 trillion ($1.2 billion), accounting for 1.5 per cent of HoSE’s total capitalization as at February 15.
Ms. Nguyen Thi Phuong Thao, President and CEO of Vietjet said: “Vietjet will maintain a high growth rate and we believe there will be a brighter future in the air for our passengers, the airline, and its investors. Vietjet is leading the way in becoming an airline with high-quality services and efficient management and as a listed company that meets best standards and practices in Vietnam and internationally. In addition to delivering new values to our passengers, we wish to bring new added value to our investors and for the Vietnamese and international markets as well.”
The airline joins the ranks of the “VN 30”; Vietnam’s largest publicly-traded companies in terms of market capitalization.
As a direct result of being listed, VJC will contribute positively to raise market capitalization, offering immediate opportunities for local and foreign investors.
Vietjet is the first Vietnamese company to have completed an IPO that meets international standards and practices (Reg S). BNP Paribas, Deutsche Bank, and JP Morgan were the IPO’s foreign global consultants. Twenty-four international investors subscribed to its offering, including Singaporean sovereign fund GIC, Wellington, Morgan Stanley, Dragon Capital, VinaCapital, and many more.
According to 2016 figures, Vietnam’s aviation market grew 29 per cent between 2012 and 2016, and the rate of passengers travelling by air increased from 0.5 per cent in 2012 to 0.8 per cent in 2016.
Vietjet, the first privately-owned commercial airline in Vietnam and one of the most efficient carriers in the world, began generating profits in its second year of operations.
Revenue in 2016 was VND27.532 trillion ($1.21 billion) with net profit of VND2.394 trillion ($105 million).
It officially launched operations in December 2011 and is an official member of the International Air Transport Association (IATA), with IOSA certification. Its high dispatch reliability is comparable to other airlines around the world.
In 2016 it operated 84,535 safe flights with a total of 121,213 flight hours. With an on-time performance rate of 83.6 per cent and a technical reliability of 99.56 per cent, Vietjet is recognized as one of the best performing airlines operating an A320/A321 fleet in the region.
After five years, the carrier has flown over 35 million passengers and been awarded 32 domestic and nine international accolades. Most recently, it was named as one of the Top 500 Brands in Asia 2016, “The Best Asian Low Cost Carrier 2015” at the TTG Travel Awards 2015, and “Most Favorite Airline in Vietnam”. Vietjet has also been named “Vietnam’s Best Place to Work” and was nominated for “Best Employer Brand Development” for consecutive years.
In addition to accolades from the domestic and international markets, Vietjet has also been recognized by the Prime Minister for its excellent contribution to the development of Vietnam’s aviation industry.
It now boasts a fleet of 45 aircraft, including A320s and A321s, and operates over 300 flights a day. It flies 63 routes in Vietnam and across the region to international destinations such as Hong Kong, Thailand, Singapore, South Korea, Taiwan, Malaysia, Cambodia, China and Myanmar.
Looking ahead, it plans to expand its network across the Asia-Pacific region and has signed agreements with leading aircraft manufacturers to purchase more brand-new modern aircraft.