VietJet stock soars 20% on market debut

hanoi — Vietnamese budget airline VietJet, famed for its bikini-clad flight attendants, jumped the maximum 20 per cent on its trading debut on Tuesday as investors bet on the surging appetite for travel among an increasingly well-heeled middle class.

The country’s largest private airline soared to 108,000 dong ($4.74) by close of play in Ho Chi Minh City, valuing it at $1.4 billion, up from its initial listing of $1.2 billion, and placing it among the largest companies on the main stock exchange.

The company listed 300 million shares after an initial public offering at 90,000 dong a share. Founder Nguyen Thi Phuong Thao, Vietnam’s first female billionaire, remains its biggest shareholder according to Bloomberg News, owning some 60 per cent of the shares directly and through other entities.

“VietJet shall maintain a continuous and high growth rate and we believe that there will be a brighter future in the air for our passengers, the airline and its investors,” she said in a statement. Vietnam’s low-cost air travel industry has grown rapidly, with the aviation market expanding around 30 per cent between 2012 and 2016.

Tourism has mushroomed across Southeast Asia and in September the head of aviation’s world governing body, IATA, urged regional governments to invest in infrastructure to keep pace with the rapid increase in passenger numbers.