Vietnam Airlines conducts offering to existing shareholders

Vietnam Airlines has successfully issued nearly 800 million additional shares to existing shareholders and brought in more than VND7.961 trillion ($350.8 million), significantly supplementing its capital and cash flow, according to an announcement on September 28.

Previously, in July, the 2021 Annual General Meeting of Shareholders approved the plan to issue the additional 800 million shares to existing shareholders in a bid to increase charter capital to VND8 trillion ($352.6 million).

The State Capital Investment Corporation (SCIC) invested VND6.89 trillion ($303.9 million) in buying shares. The All Nippon Airways (ANA) Group from Japan, a strategic shareholder, transferred the right to buy 70 million shares to Vietnam Airlines’ officers and employees without requiring any financial obligations.

The largest shareholders in Vietnam Airlines are the Commission for the Management of State Capital at Enterprises, the SCIC, and the ANA Group, with respective ownership of 55.2 per cent, 31.14 per cent, and 5.62 per cent.

It is expected that Vietnam Airlines will use the proceeds from the share issuance to supplement capital for production and business activities, cover its cash flow deficit, and support liquidity, thereby helping improve its financial capacity, which has been hit hard by the pandemic.

The share issuance has also improved the national flag carrier’s financial indicators to ensure that it meets listing conditions on the Ho Chi Minh Stock Exchange (HoSE).