Vietnam’s Bikini-clad Carrier to Go ahead with IPO Plan

Vietnam’s private budget airline VietJet will carry out its first public offering, possibly this year, said an executive.


                    VietJet Air will go ahead with its IO plan this year. Photo: planespotters.net

VietJet Aviation Joint Stock Company (VietJet Air) will go ahead with its initial public offering (IPO) as planned despite “legal complications”, the airline’s Managing Director Luu Duc Khanh told BizLIVE.

The company will launch an IPO in Vietnam first before going overseas in accordance with the Vietnamese Law on Securities, Khanh noted.

“The company will first hold an IPO in Vietnam, probably by the end of this year. Only after listing on the domestic market, we may consider listing abroad, depending on market conditions,” Khanh said.

VietJet Air has completed IPO documents as per international standards and readied information access for potential investors, the managing director added.

VietJet flight attendants perform a dance aboard the inaugural flight from Saigon to Nha Trang in 2012. Photo: VietJet/Bloomberg

VietJet Air, which is widely known for its young and attractive flight attendants who wear bikinis on inaugural flights and featured similar models on its calendars, earlier expected to list its shares on either Hong Kong or Singapore stock exchange in the second quarter of this year.

However, legal complications have made the carrier to delay the listing.

Nguyen Thi Phuong Thao, the company’s chief executive officer last week told Financial Times that she expected strong demand from investors given Vietnam’s population of nearly 100 million, its fast-growing economy and increasing consumer demand.

Thao, which founded the airline and owns an estimated 95% of the company, expressed hope that the listing could still be completed this year.

Founded in 2011, VietJet Air last year carried 9.3 million passengers and plans to increase the number of passengers to 15 million this year. It is heading to beat state-controlled flag carrier Vietnam Airlines to be the nation’s biggest carrier this year.

To accommodate its rapid growth, VietJet Air is aggressively expanding its fleet, which comprises of 31 airplane presently. During the Vietnam visit by U.S. President Obama in May, the carrier placed an order to acquire 100 B737 MAX 200 jets.

The order was valued at $11.3 billion, making it the largest deal between a Vietnamese company and a U.S. partner. The planes are scheduled to be delivered between 2019 and 2023.

During French President Hollande’s visit to Vietnam earlier this month, the private airline signed a deal with Airbus to buy 20 more A321s, which are valued at $2.39 billion at current list prices and are scheduled for delivery between 2017 and 2020.

by Tuan Minh / BizLIVE