Privately-owned VietJet Air is looking to take advantage of its recent success by holding a public offering by the end of the year.
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Unlike Vietnam Airlines (VNA), which failed to draw significant interest from international investors when it went public last November, VietJet is targeting those of the local variety, writes Tuoi Tre. The company previously had plans to sell shares to investors in Hong Kong and Singapore but ultimately scrapped this plan, perhaps learning from the experience of VNA.
Despite the setbacks of Vietnam’s leading airline, there is substantial potential for VietJet Air. According to Bloomberg, in 2014, share prices of companies in other emerging Asian nations selling stock for the first time have risen an average of almost 60%.
At a meeting last Sunday, VietJet CEO Luu Duc Khanh reported that the company had generated more than US$255 million in revenue in the first half of 2015, a 205% increase over the same period in 2014.
The low-cost carrier has been making serious inroads in the Vietnamese market in recent years, gaining a 26% share of the domestic market in 2013, a three-fold increase from the previous year.
[Photo via Blue Stahli Luân]
