Auction for Vietnam Airlines' shares is carried out at HCM City Stock Exchange. The successful equitisation of VNA and other State-owned enterprises is expected to contribute towards active and positive change for the stock market as well as the country's economy. — Photo Vietnam Airlines

HA NOI (Biz Hub) — Vietnam Airlines (VNA) sold more than 49 million shares worth VND1,093 billion (US$52.05 million) at its initial public offering (IPO) at the HCM City Stock Exchange on November 14.

A total of 1,577 investors, 28 of them foreign, bought the shares of the national carrier at an average price of VND22,307 ($1.06) each.

Vietnam Technological and Commercial Bank (Techcombank) reportedly spent VND574 billion ($27.33 million) to buy 25,760,000 or 52.18 per cent of VNA shares offered at VND22,300 each. With this sale, Techcombank has become one of VNA's biggest investors.

The bank and the carrier have set up and maintained a comprehensive co-operation relationship for the past 15 years. VNA used to be the Techcombank's largest shareholder before it divested capital from the bank and other non-core businesses in accordance with the Government's requirements.

Meanwhile, an investor with code HKVVCB 2200007 reportedly ordered 22,562,900 shares.

At the auction, Deputy Minister of Transport Nguyen Hong Truong said the equitisation of a State-owned corporation as big as VNA served as evidence of the Government's sound policy in restructuring and equitising State-owned enterprises to increase their transparency and make their production and business operations more effective.

The successful equitisation of VNA and other State-owned enterprises will contribute towards active and positive change for the stock market as well as the country's economy, added Truong.

Pham Viet Thanh, chairman of the VNA Council of Members, announced that the first shareholders' meeting would likely be held on December 3, 2015.

VNA has a registered capital of VND14.1 trillion ($671.4 million), equivalent to the number of its shares. The State owns 75 per cent of the shares while strategic investors own 20 per cent, company staff and workers 1.5 per cent, and other investors 3.5 per cent.

The Government has ordered the Ministry of Transport to decide on the reduction of State ownership in the company to less than 65 per cent at the appropriate time. Meanwhile, VNA will continue selecting its strategic investors.

In a plan to be carried out five years after equitisation, VNA aims to keep its position as national carrier, play a key role in domestic air transport and become a member of the leading airline group in Southeast Asia in both scale and service quality.

The Government has approved the carrier's valuation at VND57.156 trillion ($2.72 billion) based on its book value. Of this amount, State capital makes up VND10.567 trillion ($507.79 million). — VNS