Plan for car­rier comes amid govt’s eas­ing of rules to al­low more for­eign in­vest­ment

New Straits Times - - Business World -

cent from 30 per cent.

“Listing over­seas on big mar­kets will help in­crease our ac­cess to more fund sources, boost the trad­ing of our stock and ex­pand the list of our investors,” said Thao. “We don’t want to hide our hope to be­come the first Viet­namese com­pany to list shares over­seas.”

Shares of Vi­etJet rose 0.8 per cent to 127,800 dong at the close in Ho Chi Minh City, the biggest gain in more than two weeks. The stock has surged about 51 per cent since it started trad­ing three months ago, com­pared with a 6.4 per­cent in­crease in the Bloomberg Asia Pa­cific Air­lines In­dex.

The over­seas listing plan would make Vi­etJet the first Viet­namese com­pany to of­fi­cially trade over­seas, ac­cord­ing to Tran Anh Dao, deputy chief ex­ec­u­tive of the Ho Chi Minh City Stock Ex­change.

While Vi­etJet had done well in Viet­nam, it would face tougher com­pe­ti­tion against en­trenched play­ers, such as low-cost car­rier AirAsia Bhd, as well as Cathay Pa­cific’s re­gional unit, Cathay Dragon, as it ex­panded into Asia, said Tyler Che­ung, direc­tor of in­sti­tu­tional clients at ACB Se­cu­ri­ties Co in Ho Chi Minh City.

“They have been able to ac­com­plish some­thing im­pres­sive in a rel­a­tively small pe­riod of time,” said Che­ung. “The ques­tion is whether their busi­ness model and cor­po­rate strat­egy can trans­fer to a re­gional play.”

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