As VietJet finishes out a successful year with the launch of its latest route between Saigon to Hong Kong, the company is gearing up for its initial public offering (IPO) in early 2017.
VietJet, which is expected to surpass Vietnam Airlines as the largest domestic airline by the end of this year, announced their plan to go public in 2015. BizLive reports the date of the company’s IPO will be February 23, 2017, when VietJet is expected to rake in roughly US$170 million, according to Tuoi Tre. The airline will be valued at US$1.2 billion and plans to sell 44.7 million shares priced at VND84,600 each, reports Reuters.
“VietJet's IPO and the other share sales will attract more foreign cash to Vietnam's stock market and help raise market capital, which may help the country upgrade to emerging-market status,” Saigon Securities' Deputy Director of Retail Research Nguyen The Minh told Tuoi Tre. “Market liquidity will be improved as well.”
The firm is also expanding its fleet. In May of this year, VietJet CEO Nguyen Thi Phuong Thao inked a US$11.3 billion deal with Boeing for 100 more aircraft during US President Barack Obama’s visit. While the deal signals massive growth not only for VietJet but for the country's aviation industry in general, it remains to be seen where these new planes will go, given the limited parking space of Vietnam's airports. The national government has allotted VND70 trillion (US$3 billion) for infrastructure upgrades at airports in Hanoi, Saigon, Da Nang, Cam Ranh and Hai Phong, reports Tuoi Tre, however even with the scheduled upgrades Vietnamese airports will still be short on aircraft parking space.
The budget carrier will also continue its expansion in 2017, launching a new route between Hanoi and Siem Reap from March 30, reports Tuoi Tre. Tickets are currently on sale on the airline’s website.
