VietJet set to launch $200 million IPO next month

By Reuters   November 22, 2016 | 09:38 pm GMT+7
VietJet set to launch $200 million IPO next month
An aircraft of Vietjet prepares for landing at Noi Bai airport, in Hanoi, Vietnam November 21, 2016. Photo by Reuters/Kham

Investors will be hoping the airline's shares take off - despite possible delays.

VietJet Air has started meeting with investors ahead of a planned $200 million initial public offering to be launched next month, IFR, a Thomson Reuters publication, reported on Monday, citing people close to the deal.

VietJet, the fast-growing Vietnamese low-cost airline valued by analysts at between $1 billion and $1.4 billion, is selling a 20 percent stake.

The listing will be completed on November 30, a spokesman for the Hanoi-based airline said, but there was no immediate information on the date of the company's debut or which of the county's two main bourses it will be traded on. Investors can start taking orders for the deal between December 1 and 12.

Previously, VietJet announced its plans for an IPO in Singapore, which had been delayed due to legal complications, in what would have been the first ever overseas listing by a Vietnamese company.

Together with VietJet, the country's biggest dairy firm Vinamilk and top state-owned brewer Sabeco will make their market debuts next month.

"All three will be bright spots for Vietnam's stock market," said Nguyen Thanh Lam, deputy manager at Maybank Kim Eng Securities in Vietnam, adding that both foreign and local investors will be interested in the deals.

Related news:

Vietnam's top brewers Sabeco, Habeco to list on main bourse soon

Vietnam says no specific buyer in mind for Vinamilk Dec stake sale

First Vinamilk's stake sale set for December