Vietnam Airlines to go public in September

By Mai Ha, Thanh Nien News

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A Vietnam Airlines office / PHOTO COURTESY OF TBKTSG 
Vietnam Airlines Corporation will make its initial public offering (IPO) in September, Deputy Minister of Transport Nguyen Hong Truong said at a press conference Wednesday.
Under a plan awaiting the government’s approval, the state would retain a 70-80 percent stake in the airline, its general director, Pham Ngoc Minh, told online newspaper VnExpress.
A foreign consultant estimated the carrier’s value at nearly US$2.74 billion, he said.
But according to its books -- as of March 31 last year -- it is worth more than $2.74 billion, he said.
Since valuing an airline is “unprecedented” in Vietnam, the corporation is waiting for the government’s instructions to decide which method to adopt.
Truong said that though 10 companies owned by the transport ministry made their IPOs in the first quarter, many did not achieve good results.
The Vietnam Motors Industry (Vinamotor), for instance, managed to sell only 2.5 percent of its shares since investors believed that the local auto industry was underdeveloped, he said.
The Civil Engineering Construction Corporation No. 6 (Cienco 6) could sell only 5-7 percent, he added.

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