Photo: Vietjet Air
Sale to bring in $83.1 million and fund aircraft purchase and leases and technology investments.
Low-cost carrier Vietjet Air has announced it will sell 22,388,06 shares, or 7.46 per cent, to the Huong Duong Sunny Investment Co. at a price of VND84,600 ($3.76) per share.
Proceeds are expected to reach VND1.89 trillion ($83.1 million) and will be used to buy or lease aircraft and make technology investments.
According to a source at Vietjet, the State Securities Commission confirmed on March 10 that Vietjet had completed all documents for the private placement. The sale was also approved at an extra-ordinary shareholders meeting.
The shares cannot be sold for one year from the date of release.
The Huong Duong Sunny Investment Co. is a financial consultancy firm founded in November 2016 by Vietjet’s President and CEO Nguyen Thi Phuong Thao and has charter capital of VND1 billion ($44,000).
It holds nearly 44 million Vietjet shares, equal to 14.66 per cent of the carrier's charter capital, acquired when Vietjet sold 44.8 million of its shares to institutional investors.
After the private placement, Vietjet’s charter capital will increase to over VND3.2 trillion ($140.8 million) and Ms. Thao’s ownership in Huong Duong Sunny will rise to 37.4 per cent. The purchase is part of Vietjet’s initial public offering (IPO) plan.
Vietjet’s shares have increased sharply after listing on the Ho Chi Minh City Stock Exchange (HoSE) on February 28, fluctuating around VND130,000 ($5.7) per a share, or 55 per cent higher than the price offered to Huong Duong Sunny.
The first airline in Vietnam to be listed on the stock market, Vietjet’s capitalization stood at VND27 trillion ($1.2 billion), or 1.5 per cent of HoSE’s total capitalization, as at February 15.
“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,” said Ms. Thao. “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 value 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 “VN30” on HoSE; Vietnam’s largest publicly-traded companies in terms of market capitalization.
According to recent announcement by Forbes, the success of Vietjet Air has helped Ms. Thao become Southeast Asia’s first self-made woman billionaire. Forbes valued her assets at $1.7 billion.