Vietjet stock reaches ceiling price on first day of trading

February 28, 2017 | 12:29
(0) user say
Vietjet stock ended the morning trading session at VND108,000 ($4.74), 20 per cent higher than the initial price of VND90,000 ($3.95).

At 11.30 am, there had only been three sales of VJC stocks, with total volume of 1,030 shares and price of VND108,000 ($4.74). At the moment there is no one registering to sell, only people registering to buy.

If the price of VND108,000 ($4.74) is maintained, by the end of the day, CEO Nguyen Thi Phuong Thao would have direct and indirect (through her company Huong Duong Sunny Investment Ltd.) holding of VND10,058 trillion ($465 million) worth of Vietjet stock.

A few days ago Vietjet already registered price on the OTC of VND113,000 ($4.96) so the price may rise even more.

The first airline in Vietnam to be listed on HOSE, Vietjet has a chartered capital of VND3 trillion (VND90,000 per share). That would mean Vietjet’s capitalisation would stand at VND27 trillion (equivalent to $1.2 billion), accounting for 1.5 per cent of HOSE capitalisation as of February 15, 2017.

The airline will now join the ranks of ‘VN 30’, Vietnam’s biggest publicly-traded companies in terms of market capitalisation.

As a direct result of being hosted on HOSE, VJC will contribute positively to raise market capitalisation, offering immediate opportunities for local and foreign investors.

Vietjet is the first Vietnamese company to have completed an IPO that meets international standards and practices (Reg S). BNP Paribas, Deutsche Bank, JP Morgan are the IPO's foreign joint global consultants. Twenty-four international investors subscribed to Vietjet's offering, including Singapore sovereign fund GIC, Wellington, Morgan Stanley, Dragon Capital, VinaCapital, and many more.

According to 2016 statistics, Vietnam’s aviation transportation market grew by 29 per cent between 2012 and 2016, and the rate of customers using airplanes as their means of transportation increased from 0.5 per cent in 2012 to 0.8 per cent in 2016.

Vietjet, the first privately-owned commercial airline in Vietnam, and one of the most efficient carriers in the world, had started to generate profits in its second year of operations.
Vietjet’s revenue in 2016 was VND27.532 trillion ($1.21 billion) with a net profit of VND2.394 trillion, ($105 million) with an earnings per share of VND8,762.

“Vietjet shall maintain a continuous and high growth rate and we believe that there will be a brighter future in the air for our passengers, the airline and its investors. Vietjet is leading the way in becoming an airline with high-quality services and efficient management and as a listed company that meets best standards and practices in Vietnam and internationally. In addition to delivering new values to our passengers, we wish to bring new added value to our investors, and for Vietnamese and international markets as well,” said Vietjet’s President & CEO Nguyen Thi Phuong Thao.

Established in 2007, Vietjet officially launched operations in December 2011. The airline is an official member of the International Air Transport Association (IATA) with IOSA certification. Vietjet’s high dispatch reliability is comparable to other airlines around the world.

In 2016, the airline operated 84,535 safe flights with a total of 121,213 flight hours. With an on-time performance rate of 83.6 per cent, and a technical reliability of 99.56 per cent, Vietjet is recognised as one of the best performing airlines operating an A320/A321 fleet in the region.

After five years of operations, the airline has flown over 35 million passengers, and been awarded 32 domestic and nine international accolades. Most recently, the airline was also named as one of the Top 500 Brands in Asia 2016, “The Best Asian Low Cost Carrier 2015” at the TTG Travel Awards 2015, and “The Most Favourite Airline in Vietnam”. Vietjet has also been named as “Vietnam’s Best Place to Work” and was nominated for “Best Employer Brand Development” in consecutive years.

Foreign investors show interest, will Vietjet's shares fly high?

By By Van Khanh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional