Vietnam Airlines submits IPO plan to government

Vietnam Airlines submitted its IPO plan to Vietnam's Ministry of Transport, according to local reports for sources including VnExpress, baodautu.vn, VNN and VNS. The carrier aims to raise USD51 million to be used for fleet expansion. Reporting a registered share capital of VND14.1 trillion (USD662 million), the airline will initially offer a 25% stake to private investors and in the second phase of the offering the government will reduce its stake from 75% to no less than 65%. Investors will be limited to a maximum of three shareholders from the airline, corporate and financial sectors and shares will also be made available to Vietnam Airlines staff. The carrier intends to retain its income sources and government loan guarantee. The IPO is expected to be launched within three months once it receives approval from Vietnam's Prime Minister Nguyen Tan Dung.