IPO of Vietnam Airlines wins government approval

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PF705HM1N2The Vietnamese government has approved final plans to sell 25 per cent of state-owned carrier Vietnam Airlines in a privatisation that will involve an initial public offering of shares, an online newspaper reported on September 11.

The Hanoi-based airline, with a registered capital of 14 trillion dong ($661 million), will sell 20 per cent of stake to a strategic partner or partners, Vietnamese news website NDH quoted a senior government official as saying.

A further 5 per cent will be sold to other investors, according to NDH, while the state will retain a 75 percent holding.

Vietnam Airlines is one of the many Vietnamese state companies that are about to go public in the country, following the government’s ambitious privatisation plan which is speeding share offerings, with a target to sell stakes in more than 400 state-run companies by the end of next year.

Foreign investors, however, have shown little interest so far this year in Vietnam’s two dozen IPOs of state companies, which did not meet capital raising goals. Vietnam Airlines is one of the biggest state-owned companies in an IPO so far.

Besides the national carrier, big companies such as Vietnam National Textile & Garment Corp. and Vietnam Mobile Telecom Services Co., known as Mobifone, are planning to go public.

 

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Reading Time: 1 minute

The Vietnamese government has approved final plans to sell 25 per cent of state-owned carrier Vietnam Airlines in a privatisation that will involve an initial public offering of shares, an online newspaper reported on September 11.

Reading Time: 1 minute

PF705HM1N2The Vietnamese government has approved final plans to sell 25 per cent of state-owned carrier Vietnam Airlines in a privatisation that will involve an initial public offering of shares, an online newspaper reported on September 11.

The Hanoi-based airline, with a registered capital of 14 trillion dong ($661 million), will sell 20 per cent of stake to a strategic partner or partners, Vietnamese news website NDH quoted a senior government official as saying.

A further 5 per cent will be sold to other investors, according to NDH, while the state will retain a 75 percent holding.

Vietnam Airlines is one of the many Vietnamese state companies that are about to go public in the country, following the government’s ambitious privatisation plan which is speeding share offerings, with a target to sell stakes in more than 400 state-run companies by the end of next year.

Foreign investors, however, have shown little interest so far this year in Vietnam’s two dozen IPOs of state companies, which did not meet capital raising goals. Vietnam Airlines is one of the biggest state-owned companies in an IPO so far.

Besides the national carrier, big companies such as Vietnam National Textile & Garment Corp. and Vietnam Mobile Telecom Services Co., known as Mobifone, are planning to go public.

 

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