The Hanoitimes - The reference share price of national carrier Vietnam Airlines on the first trading day stood at VND40,600 (US$1.74) per share, giving the airline a market capitalization of VND57 trillion (US$2.5 billion).
Vietnam Airlines listed its entire 1.4 billion shares on the Ho Chi Minh Stock Exchange on May 7, following the cancellation of its listing on the Unlisted Public Company Market (UPCoM) on April 24, local media reported.
Pham Ngoc Minh, Vietnam Airlines’ board chairman, said the move marks an important step in enhancing the airline’s credibility, transparency and standardizing its corporate governance, presenting opportunities to find new investors.
Minh said Vietnam Airlines gained all-time high revenue of VND100 trillion (US$4.29 billion) in 2018 and posted a record pre-tax consolidated profit of VND3.31 trillion (US$142.2 million), representing a 36.8% increase compared to the original target.
In the first quarter of 2019, Vietnam Airlines reported consolidated revenue of VND26 trillion (US$1.11 billion) and pre-tax consolidated profit of VND1.58 trillion (US$67.88 million), equivalent to 45% of the year’s estimate.
Nguyen Hoang Anh, chairman of the Commission for the Management of State Capital (CMSC), said Vietnam Airlines is currently the largest company to date listing share on HoSE in 2019, and one of the two corporations among 19 leading state-run groups that CMSC holds the role of state capital representative having share listed on HoSE.
In 2019, Vietnam Airlines plans to divest state capital to 51% as instructed by the government.
As of present, the largest shareholder of Vietnam Airlines is the government-run CMSC, holding an 86.16% stake, followed by Japan’s biggest airline ANA Holdings with 8.8%, and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) 1.04%.
In addition to Vietnam Airlines, Vietnam currently has a total of five airlines, including budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, Vietnam Air Services (VASCO) and Bamboo Airways.