Vietnam Airlines valued at US$2.1b after shares soar 40% on debut

Hanoi

SHARES of Vietnam Airlines surged 40 per cent on their stock market debut on Tuesday, valuing the firm at US$2.1 billion, as investors sought exposure to the flagship carrier to tap strong air travel growth in the South-east Asian nation.

A strong stockmarket showing could prove beneficial to the Vietnamese government's stake divestment plan. The government wants to sell off its stake in several state firms, including brewers Sabeco and Habeco, and use stockmarket prices as benchmarks to value its holdings in them. Vietnam Airlines shares hit 39,200 dong (S$2.50) at the mid-day break on the Unlisted Public Company Market compared to their opening price of 28,000 dong, data from the secondary exchange showed.