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Vietjet to raise $84 million from share issuance

Update: January, 30/2017 - 12:58
Vietjet Aviation Joint Stock Company (Vietjet) has decided to issue more than 22 million shares to Hướng Dương Sunny Investment Co Ltd to raise US$84 million. — Photo
Viet Nam News

HÀ NỘI — Vietjet Aviation Joint Stock Company will issue more than 22.3 million shares, equal to 7.46 per cent of the company’s outstanding shares, to Hướng Dương Sunny Investment Co Ltd.

The move will raise nearly VNĐ1.9 trillion (US$84.18 million).

The decision was stated in the company’s shareholder resolution, which was released last week.

Hướng Dương Sunny Investment Co Ltd, a finance consultancy company, will purchase those 22.3 million shares at the price of VNĐ84,600 per share.

The deal will be undertaken in 2017 on approval of the State Securities Commission and those shares will be suspended from trading for a year from the issuance date.

The share issuance will increase Vietjet’s chartered capital to VNĐ3.22 trillion. The income raised from share issuance will be used to lease and buy planes, invest in the IT system and other business activities.

Hướng Dương Sunny Investment Co Ltd is a financial consultancy firm founded in November 2016 with chartered capital of VNĐ1 billion by Vietjet’s general director Nguyễn Thị Phương Thảo.

The company holds nearly 44 million shares in Vietjet, equal to 14.66 per cent of the aviation company’s chartered capital. These shares may have been purchased when Vietjet sold 44.8 million of its shares to institutional investors at VNĐ84,600 per share and 3.5 million shares to individual investors at VNĐ86,500 per share.

According to sources familiar with the matter, the purchase made by Hướng Dương Sunny Investment Co Ltd is part of Vietjet’s initial public offering plan. According to the plan, the additional shares issued by Vietjet will be purchased by Thảo or her company.

The quantity of additional shares is equal to half of the shares sold to institutional investors and the price of additional shares is equal to that of shares sold to institutional investors.

Vietjet also said in its shareholder resolution that the company will set up subsidiaries and affiliates in jet leasing, airport services, franchising, e-commerce, and finance and insurance.

Shareholders approved the company’s listing on the HCM Stock Exchange. — VNS

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