Investors buy 49 million Vietnam Airlines shares
The national flag carrier Vietnam Airlines sold more than 49 million shares worth VND1,093 billion (US$52.05 million) at its initial public offering (IPO) at the HCM City Stock Exchange on November 14.
A total of 1,577 investors bought the shares of the national carrier at an average price of VND22,307 (US$1.06) each.
The Vietnam Technology and Commerce Bank (Techcombank) reportedly spent VND574 billion (US$27.33 million) to buy 25,760,000 or 52.18% of the shares offered at VND22,300 each. With this sale, Techcombank has become one of the airline’ biggest investors.
At the auction, Deputy Minister of Transport Nguyen Hong Truong said the equitisation of a State-owned corporation as big as Vietnam Airlines served as evidence of the Government's sound policy in restructuring and equitising State-owned enterprises to increase their transparency and make their production and business operations more effective.
The successful equitisation of Vietnam Airlines and other State-owned enterprises will contribute towards active and positive change for the stock market as well as the country's economy, added Truong.
Pham Viet Thanh, Chairman of the Vietnam Airline Council of Members, announced that the first shareholders' meeting is scheduled for March 12, 2015.
Vietnam Airlines has a chartered capital of VND14.1 trillion (US$671.4 million), equivalent to the number of its shares. The State owns 75% of the shares while strategic investors own 20%, company staff and workers 1.5%, and other investors 3.5%.
The Government has ordered the Ministry of Transport to decide on the reduction of State ownership in Vietnam Airlines to less than 65% at an appropriate time. Meanwhile, the company is selecting its strategic investors.
In a plan to be carried out five years after equitisation, Vietnam Airlines aims to keep its position as national carrier, play a key role in domestic air transport and become a member of the leading airline group in Southeast Asia in both scale and service quality.
The Government has approved the carrier's valuation at VND57.156 trillion (US$2.72 billion) based on its book value. Of this amount, State capital makes up VND10.567 trillion (US$507.79 million).
The Vietnam Technology and Commerce Bank (Techcombank) reportedly spent VND574 billion (US$27.33 million) to buy 25,760,000 or 52.18% of the shares offered at VND22,300 each. With this sale, Techcombank has become one of the airline’ biggest investors.
At the auction, Deputy Minister of Transport Nguyen Hong Truong said the equitisation of a State-owned corporation as big as Vietnam Airlines served as evidence of the Government's sound policy in restructuring and equitising State-owned enterprises to increase their transparency and make their production and business operations more effective.
The successful equitisation of Vietnam Airlines and other State-owned enterprises will contribute towards active and positive change for the stock market as well as the country's economy, added Truong.
Pham Viet Thanh, Chairman of the Vietnam Airline Council of Members, announced that the first shareholders' meeting is scheduled for March 12, 2015.
Vietnam Airlines has a chartered capital of VND14.1 trillion (US$671.4 million), equivalent to the number of its shares. The State owns 75% of the shares while strategic investors own 20%, company staff and workers 1.5%, and other investors 3.5%.
The Government has ordered the Ministry of Transport to decide on the reduction of State ownership in Vietnam Airlines to less than 65% at an appropriate time. Meanwhile, the company is selecting its strategic investors.
In a plan to be carried out five years after equitisation, Vietnam Airlines aims to keep its position as national carrier, play a key role in domestic air transport and become a member of the leading airline group in Southeast Asia in both scale and service quality.
The Government has approved the carrier's valuation at VND57.156 trillion (US$2.72 billion) based on its book value. Of this amount, State capital makes up VND10.567 trillion (US$507.79 million).