Upcoming auction of 371 million rights to buy Vietnam Airlines shares

Accordingly, the number of securities offered for sale is 371,533,127 rights to purchase HVN shares, owned by the Ministry of Transport (1 share entitles 1 right, 100 rights to purchase 15,5753 additional shares issued to existing shareholders to increase charter capital).

Thus, this quantity corresponds to the right to buy more than 57.8 million Vietnam Airlines shares.

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The starting price for each right to buy Vietnam Airlines shares is 6,026 VND. It is estimated that the Ministry of Transport will collect at least 2,238 billion VND from this deal. The offering is expected to be held at the Hanoi Stock Exchange.

On the same day, Vietnam Airlines also announced the issuance of shares to the public with a registered number of 191,191,377 shares to existing shareholders whose names are on the list at the record date for exercising rights, at a price of VND10,000/share. The last registration date is April 20, 2018.

The amount of capital to be mobilized is VND 1,911,913,770,000 with the purpose of raising capital to supplement charter capital to implement the investment project to purchase aircraft and increase working capital.

HVN said that the record date for shareholders exercising their rights according to the notice of record date for shareholders exercising their rights is 15.5753%. The right to purchase can only be transferred once. The transfer period for the right to purchase is from May 7, 2018 to June 20, 2018; The time to register to purchase and pay for shares is from May 7, 2018 to July 1, 2018.

In January 2017, Vietnam Airlines began listing and trading on UPCoM with stock code HVN.

Recently, the airline signed a joint venture contract with Air France to increase its exploitation of the European market, while pursuing a dual-brand strategy with Jetstar Pacific Airlines to increase competitiveness in the domestic market.

Regarding the continued promotion of equitization and reduction of state capital at Vietnam Airlines, Mr. Duong Tri Thanh, General Director of Vietnam Airlines said: "We have been directed to reduce the state capital ownership ratio at the Corporation to 51% by 2020."

"Currently, the State owns 86.2% of Vietnam Airlines' shares and we are implementing procedures for the State to offer the right to buy 57.8 million shares in this share offering to existing shareholders, reducing the ownership ratio to about 82.1%, expected to take place in December this year or the first quarter of 2018. After that, Vietnam Airlines will switch to listing shares on the HOSE," said Mr. Thanh.