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Vietjet refutes barriers to offshore listing

No regulations require Vietjet to hold their initial public offering (IPO) in Vietnam before moving to an offshore market.

Vietjet refutes barriers to offshore listing

Vietjet expects to conduct its IPO in Vietnam by the end of this year before moving to list in Hong Kong or Singapore. 

This was announced by Luu Duc Khanh, managing director of Vietjet, at the VinaCapital Investor Conference in Ho Chi Minh City recently, according to newswire

Khanh added that the reason for the delay in the company’s overseas listing is not the complexity of procedures, as previously reported.

“Our initial plan was either to list in Singapore or in Hong Kong. However, after being consulted by our financial partners, we decided to do the listing on the Ho Chi Minh City Stock Exchange (HoSE) first. When this is done, we will return to the listing in Hong Kong or Singapore,” Khanh stated.

“Vietjet expects to hold its IPO in 2016, before moving to list in Hong Kong or Singapore, because the company wants to have a test run in a market it understands better, and where the brand is better known, before going any further,” Khanh added.

Along with Vietjet, several other Vietnamese companies are seeking what could be the first overseas IPO. New Asia Partners-backed venture, restaurant operator Huy Vietnam and fusion coffee shop chain The KAfe, had earlier stated intentions to explore the possibility of an IPO in Hong Kong or London. 

Just recently, TTC Group, which operates in sugar production, energy, and real estate, has released its plans to raise US$600 million from selling the shares of one of its sugar units then list it in Singapore by 2020. 

Other major businesses, including dairy firm Vinamilk, furniture and real estate conglomerate Hoang Anh Gia Lai, and PetroVietnam Gas Corporation, used to plan being listed in Singapore.