371 million rights to purchase shares in Vietnam Airlines are about to be auctioned off.

Accordingly, the number of securities offered is 371,533,127 rights to purchase HVN shares, owned by the Ministry of Transport (1 share entitles the holder to 1 right, 100 rights entitle the holder to purchase 15.5753 additional shares issued to existing shareholders to increase charter capital).

Therefore, this amount corresponds to the right to purchase more than 57.8 million shares of Vietnam Airlines.

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The starting price for each right to purchase shares in Vietnam Airlines is 6,026 VND. The Ministry of Transport is estimated to earn at least 2,238 billion VND from this transaction. The offering is expected to be held at the Hanoi Stock Exchange.

On the same day, Vietnam Airlines also announced a public offering of 191,191,377 shares to existing shareholders whose names are on the record date for exercising the rights, at a price of VND 10,000 per share. The last registration date is April 20, 2018.

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

HVN announced that the record date for shareholders to exercise their rights is based on the shareholder record date notice with a ratio of 15.5753%. The right to purchase shares can only be transferred once. The transfer period for the right to purchase shares is from May 7, 2018 to June 20, 2018; the registration and payment period for purchasing shares is from May 7, 2018 to July 1, 2018.

In January 2017, Vietnam Airlines began listing and trading on UPCoM under the ticker symbol HVN.

Recently, the company signed a joint venture agreement with Air France to strengthen its presence in the European market, while also pursuing a dual-brand strategy with Jetstar Pacific Airlines to increase its competitiveness in the domestic market.

Regarding the continued push for equitization and the reduction of state capital in Vietnam Airlines, Mr. Duong Tri Thanh, General Director of Vietnam Airlines, said: "We have been instructed to reduce the state ownership ratio in 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 purchase 57.8 million shares in this share offering to existing shareholders, reducing its ownership stake to approximately 82.1%, expected to take place in December of this year or the first quarter of 2018. After that, Vietnam Airlines will list its shares on the HOSE," Mr. Thanh said.