At a meeting with investors in HCM City on October 13, Vietjet’s CEO Luu Duc Khanh revealed that the company is preparing for an IPO at the HCM City Stock Exchange, expected in three more months.
Khanh said it was now the right time for Vietjet to have an IPO as the company is in its high growth period.
Established in 2007, Vietjet is the first budget airline in Vietnam. Providing the first commercial flight in December 2011, the air carrier had serviced 30 million passengers by October 2016.
It plans to serve 15 million passengers this year, an increase of 60 percent compared with 2015, which would bring turnover twice as much as last year’s.
At an interview with Nikkei, Nguyen Thi Phuong Thao, Vietjet’s founder, said the domestic transport demand and the government’s new policies would bring good opportunities to private enterprises in the field.
|While Vietjet Air plans an IPO (initial public offering) by the end of the year, Vietnam Airlines, which has just shifted from a state-owned enterprise to a joint stock company, has vowed to enter the bourse soon.|
After five years of operation, Vietjet, has been providing flights on 37 air routes in Vietnam. It plans to expand domestic market share to 40 percent and compete directly with Vietnam Airlines, the nation’s flag air carrier.
Vietjet now has 40 aircraft, including Airbus A320s and A321s, providing 350 flights a day.
With an ambition to reach out to the international market, Vietjet last August joined hands with Hahn Air to sell its tickets through the German airline’s booking system.
With impressive business performance, Vietjet’s IPO is believed to be one of the most attractive events for securities investors this year.
As for Vietnam Airlines, Deputy Minister of Transport Nguyen Nhat said the air carrier’s move of shifting to a joint stock company is considered a ‘breakthrough’.
Vietnam Airlines has been told to complete procedures to increase chartered capital and sell shares to existing shareholders as well as complete procedures to list its shares on the bourse.
In 2015, Vietnam Airlines carried 17.4 million passengers and 221,600 tons of cargo which brought turnover of VND69 trillion. The air carrier’s total investment value was VND21.6 trillion, of which VND21.1 trillion was used to buy aircraft.
Vietnam Airlines plans to serve 20 million in 2016, an increase of 15.4 percent over last year.