Vietnam Airlines ready for IPO in second quarter 2014

Reading Time: 2 minutes

Vietnam airlinesVietnamese national carrier Vietnam Airlines will launch its initial public offering, or IPO, by the end of the second quarter of 2014, a move meant to speed up its progress of going private, local media reported.

The carrier in April 2013 already signed an IPO consultancy contract with a joint venture including Morgan Stanley, Citigroup and the two domestic firms BIDV Securities Co and Viet Nam Valuation Finance Consultancy JSC.

Vietnam Airlines plans to sell 20 to 30 per cent of its stakes to the public, 10 to 20 per cent of which will be sold to foreign investors, while the state will retain its holdings from 70 to 80 per cent. The carrier expects to collect around $200 million from the IPO.

Vietnam Airlines’ equity is estimated to be at about 14.4 trillion dong ($680 million), and expected to reach $1 billion by 2015.

Vietnam Airlines has also launched a restructuring plan for 2012-2015 during which the state will decrease its stake in the airline to 65-75 per cent after the IPO.

Under the plan, apart from the holding, which includes nine companies, the restructured Vietnam Airlines will consist of 26 independently audited companies.

The holding will own a 100 per cent stake in Vietnam Airlines Engineering Company, while owning half of the registered capital of 14 companies and less than 50 per cent of the registered capital in the 11 remaining companies.

After completed restructuring, Vietnam Airlines will comprise four airlines namely the mother corporation, VASCO, Jetstar Pacific and Cambodia Angkor Air.

By late 2015, Vietnam Airlines is expected to completely divest its capital from non-core businesses with a view to improving its business performance. Specifically, 10 names the airline will withdraw capital from include Techcombank, Bao Minh Corporation, France Telecom, Saigon Post and Telecommunications Service Company.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Vietnamese national carrier Vietnam Airlines will launch its initial public offering, or IPO, by the end of the second quarter of 2014, a move meant to speed up its progress of going private, local media reported.

Reading Time: 2 minutes

Vietnam airlinesVietnamese national carrier Vietnam Airlines will launch its initial public offering, or IPO, by the end of the second quarter of 2014, a move meant to speed up its progress of going private, local media reported.

The carrier in April 2013 already signed an IPO consultancy contract with a joint venture including Morgan Stanley, Citigroup and the two domestic firms BIDV Securities Co and Viet Nam Valuation Finance Consultancy JSC.

Vietnam Airlines plans to sell 20 to 30 per cent of its stakes to the public, 10 to 20 per cent of which will be sold to foreign investors, while the state will retain its holdings from 70 to 80 per cent. The carrier expects to collect around $200 million from the IPO.

Vietnam Airlines’ equity is estimated to be at about 14.4 trillion dong ($680 million), and expected to reach $1 billion by 2015.

Vietnam Airlines has also launched a restructuring plan for 2012-2015 during which the state will decrease its stake in the airline to 65-75 per cent after the IPO.

Under the plan, apart from the holding, which includes nine companies, the restructured Vietnam Airlines will consist of 26 independently audited companies.

The holding will own a 100 per cent stake in Vietnam Airlines Engineering Company, while owning half of the registered capital of 14 companies and less than 50 per cent of the registered capital in the 11 remaining companies.

After completed restructuring, Vietnam Airlines will comprise four airlines namely the mother corporation, VASCO, Jetstar Pacific and Cambodia Angkor Air.

By late 2015, Vietnam Airlines is expected to completely divest its capital from non-core businesses with a view to improving its business performance. Specifically, 10 names the airline will withdraw capital from include Techcombank, Bao Minh Corporation, France Telecom, Saigon Post and Telecommunications Service Company.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid