StoxPlus | Thu, Sep 5, 2013 01:05:00 PM
The National flag carrier of Vietnam-Vietnam Airlines or VNA plans to seek for one strategic investor in the fourth quarter of this year to prepare for its initial public offering (IPO) next year, the local newspaper Vneconomy reported.
VNA considers equitization as one of its key missions in 2013 and has been moving equitization as quick as possible. Vietnam Airlines is now working with consultants including Morgan Stanley and Citigroup to evaluate its assets for equitisation, the group said, adding that a corporate evaluation report is expected to be completed in September to submit authorities for approval.
Vietnamese Government has been trying to boost an IPO at Vietnam Airlines since 2010 when the competition in the domestic aviation market started becoming tough. It is planned that Vietnam Airlines will sell its shares in the second half of 2014.
Vietnam Airlines’ equitization was back busy since last week when VietJet Aviation Jsc- the country''s only privately owned carrier posted profit and announced to consider a plan of IPO for fund expansion.
VNA’s moving toward an IPO is reasonable as its risk is market penetration by low-cost carriers, K Ajith, transport research director in Asia of the Singapored- based UOB Kay Hian company said.
In the first half of this year, VNA carried about 7.3 million passengers, rising 6.4% on year and the firm expected to carry total of 14.4 million passenger for the whole year, rising 6.7% on year.
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