Vietjet Air takes first step to list shares in New York

Managers of Vietjet Air have confirmed that the private air carrier is considering meeting with the managers of the New York stock market to discuss listing of its shares.

Dinh Trong Thinh, an economist, said that listing shares on foreign stock markets is the goal of many enterprises because joining transparent financial markets will help them become global companies.

However, Vietnamese enterprises will have to satisfy strict requirements. To be eligible to list shares on NYSE, for example, a business must have at least 5,000 shares, 2.5 million public shares, and US$100 million of gross pre-tax profits made in the last three years.

The high listing fee and the required financial sources to maintain presence on foreign bourses are also a big barrier.

At SGX, for example, the lowest listing fee is SGD50,000 and the highest is SGD200,000. The listing application fee is SGD20,000. Enterprises also have to pay a fee of SGD25,000 to SGD100,000 every year.

Hoang Anh Gia Lai had to cancel the plan to list its shares at SGX because it was time- consuming and costly, and it was not sure about the efficiency.

“These will still be challenges for Vietjet for the immediate time and future,” Thinh said.

He said that it would be risky for Vietjet and any other Vietnamese businesses to list shares on foreign bourses if they still cannot satisfy requirements according to international standards.

If they are weak at corporate governance, production and business capability, they will not be recognized in the international market, even if they can enter foreign bourses.

“It is more important to consider how long they can stay on the bourse,” he said.

“Vietjet needs to think if it is powerful enough and its shares are prestigious enough to interest international investors. It is not a simple matter,” he said.

Tran Dinh Ba from the Vietnam Economics Science Association believes that with strong determination and potential, Vietjet will succeed.

Vietjet Air is now second to Vietnam Airlines, the nation’s flag air carrier, in domestic market share, but the gap is small, just 1% (Vietjet Air 41% and Vietnam Airlines 42%). 

In the stock market, Vietjet Air’s share price is 4.2 times higher than Vietnam Airlines, while its capitalization value has exceeded VND1.448 trillion.

VietJet Air CEO Nguyen Thi Phuong Thao,  is one of two Vietnamese representatives in Forbes 2017 billionaires list. The other is Vingroup chairman Pham Nhat Vuong.

Mời quý độc giả theo dõi VOV.VN trên

Related

Vietjet Air to offer promotional tickets on Vietnam-Myanmar flights
Vietjet Air to offer promotional tickets on Vietnam-Myanmar flights

To celebrate the summer, Vietjet Air is to organise a series of activities at Myanmar Plaza, looking to offer its visitors exciting performance and opportunities to buy super promotional tickets.

Vietjet Air to offer promotional tickets on Vietnam-Myanmar flights

Vietjet Air to offer promotional tickets on Vietnam-Myanmar flights

To celebrate the summer, Vietjet Air is to organise a series of activities at Myanmar Plaza, looking to offer its visitors exciting performance and opportunities to buy super promotional tickets.

Vietjet sells 5,000 promotional tickets at Hong Kong int’l travel expo
Vietjet sells 5,000 promotional tickets at Hong Kong int’l travel expo

Vietjet will give away 5,000 promotional tickets priced from zero US dollars at the Hong Kong International Expo (ITE) 2017, slated for June 15-18 at Hong Kong Convention and Exhibition Centre.

Vietjet sells 5,000 promotional tickets at Hong Kong int’l travel expo

Vietjet sells 5,000 promotional tickets at Hong Kong int’l travel expo

Vietjet will give away 5,000 promotional tickets priced from zero US dollars at the Hong Kong International Expo (ITE) 2017, slated for June 15-18 at Hong Kong Convention and Exhibition Centre.