Vietnam Airlines aims to raise US$51m in IPO

[HANOI] National carrier Vietnam Airlines is seeking to raise US$51 million in an initial public offering (IPO) that will only offer a small fraction of the firm's shares to the public and which values the company at US$1.5 billion.

The government plans to retain 75 per cent of the company while also selling 20 per cent to a strategic partner or partners, which could be other carriers or investment firms, according to state-run media that quoted a company proposal submitted to the transport ministry. Some shares will also be offered to staff.

Vietnam is planning more than 430 IPOs for state-run companies this year and in 2015, but only a few - including Vietnam Airlines, mobile network operator MobiFone and garment firm Vinatex - are expected to catch the eye of foreign investors.