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Vietjet to sell nearly 18 million treasury shares to strategic investors

Khanh Minh Thursday | 08/06/2020 13:18

Vietjet expects to receive about VND1,793 billion ($77 million) from selling nearly 18 million treasury shares. Photo: Vietjet

Budget carrier Vietjet’s Board of Directors has approved the plan to sell 17.77 million treasury shares, or 3.28% of the capital, to strategic investors, according to exchange filing.

The shares Vietjet plans to sell were bought in August 2019 with the average price of VND132,063 ($1.37) apiece.

The Vietjet shares are being traded on the market at the price of VND100,900 apiece on Thursday. At this price, Vietjet expects to receive about VND1,793 billion ($77 million).

As of end-June, Vietjet had VND2,413 billion ($104 million) and cash equivalents, down 55% from the beginning of the year. In contrast, short-term receivables increased by 21% to VND20,339 billion ($875 million).

It reduced short-term loans by nearly VND2,000 billion ($86 million) to VND6,193 billion ($266 million) and long-term loans did not change significantly.

The air carrier’s transport business came under the Covid-19 pandemic with a decrease in revenue by 54% and VND1,122 billion ($48.3 million) loss in the second quarter.

In the first 6 months, Vietjet recorded a pre-tax profit of VND73 billion ($3.1 million), nearly fulfilling its target of VND100 billion ($4.3 million) profit in 2020.

► Vietjet’s Q2 after-tax profit rises 71% to $45.9mln despite pandemic

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