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Flag carrier announces IPO plan
National flag carrier Vietnam Airlines (VNA) plans to launch its long-delayed initial public offering by the end of the second quarter of 2014.
Its executives believe the share price will be higher than its par value of VND10,000 (US$0.48).
VNA general director Pham Ngoc Minh said the attraction of the airline stocks did not rely on dividend payout but was in the company's value.
"Investors, especially foreign ones, will find investment in VNA attractive for many factors including two-digit growth (except for 2011 and 2012), a modern fleet and big potential in the local aviation market," Minh was quoted as telling Tuoi Tre (The Youth) newspaper.
Minh said VNA was in the process of making business value assessment, conducted by international firms Citigroup and Morgan Stanley. These consulting partners will collect information on customer data, flight network and influence on the domestic and international markets.
"If nothing changes, the IPO will take place late in the second quarter of 2014," Minh said, expecting VNA would obtain $200 million by selling 383 million shares at the IPO.
VNA's IPO is one of the most anticipated equitisation of large State corporations. The carrier planned to equitise in 2008 but missed several deadlines due to unfavourable market conditions.
VNA reported a pre-tax profit of VND173 billion ($8.16 million) in the first half of this year, far surpassing its entire year forecast of VND83.5 billion ($4 million), while its revenue rose 5.3 per cent year-on-year to VND 27trillion ($1.28 billion).
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