Vietjet suspends overseas listing

September 16, 2016 | 20:30

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Vietnam’s only private airline Vietjet will suspend the implementation of its listing overseas due to overly complex procedures, according to newswire Financial Times.

Vietjet CEO Nguyen Thi Phuong Thao said that both Vietjet and its consultants could not foresee difficulties during completing these procedures.

Previously, Vietjet announced plans to list its 30 per cent stake on foreign stock exchanges in the second quarter of this year to realise its ambition to become "Asia's Emirates". However, according to current regulations, Vietjet has to complete its listing on the domestic stock exchange before issuing shares overseas.

According to Wall Street Journal, in January 2015, Vietjet planned to launch the IPO to acquire $800 million within the year. However, there has been no information forthcoming about the IPO to date.

Starting operation in December 2011, low-cost carrier Vietjet is seeking to expand in a market that has produced a 20 per cent annual growth in the last three years. At present, Vietjet operates more than 250 flights a day along 50 routes in Vietnam and across the region, to countries such as Thailand, Singapore, South Korea, Taiwan, China, Myanmar, and Malaysia.

In May, Vietjet signed a deal to buy 100 Boeing 737 MAX 200 jets worth $11.3 billion at list price. The delivery of the planes, expected during 2019 to 2023, will bring the fleet to more than 200 aircrafts, potentially surpassing flag carrier Vietnam Airlines, which now has an 89-strong fleet.

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