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| When the VNA is ready, its shares will be listed on the stock market as per the regulation. — File Photo |
HA NOI (Biz Hub) — Transport Minister Dinh La Thang has approved Vietnam Airlines's (VNA) share price at VND22,300, or US$1.06, each for its initial public offering.
The minister's decision No 3584/QD – BGTVT showed that about 49 million shares, equal to 3.475 per cent of VNA's registered capital of about VND14 trillion or $671.4 million, will be auctioned at the HCM City Stock Exchange.
Thang said that when the firm is ready, its shares will be listed on the stock market as per the regulations.
According to the valuation of the Vietnam Development Investment Bank's Securities Joint Stock Company, the initial price is in accordance with the real value, the financial market's supply and demand as well as VNA's development potential.
VNA has a registered capital of VND14.1 trillion or $671.4 million.
The Government has approved the valuation of the carrier at VND57.156 trillion, or US$2.72 billion, based on its book value, of which the State capital is VND10.567 trillion, or $507.79 million.
Although the global aviation market has not yet come out of the economic crisis, VNA was the only airlines in Viet Nam to make profit in the 2013 fiscal year, with a total revenue of more than VND54 trillion ($2.57 billion) and a profit of VND157 billion ($7.47 million).
VNA has also maintained a 40.7 per cent share of the international airlines market in Viet Nam, followed by Thai Airways at 4.3 per cent and Cambodia Angkor at 3.7 per cent. — VNS