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Sovico Aviation bids for Vietjet sharesSovico Aviation bids for Vietjet shares

Author: Theodore Koumelis / Date: Thu, 11/26/2020 - 08:11
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Sovico Aviation Holdings Company has registered to buy 33 million shares of Vietjet Aviation Joint Stock Company

Sovico Aviation Holdings Company (Sovico Aviation) has registered to buy 33 million shares of Vietjet Aviation Joint Stock Company (HoSE: VJC). The deal is being executed between November 12 and December 11, 2020 via put-through and/or order-matching transactions.

Such move by Sovico Aviation, Vietjet’s blockholder, suggests its confidence in Vietjet’s recovery post Covid-19 due to the airline’s effective and flexible business solutions in response to the fluctuations in the aviation market.

Vietnamese airlines’ stocks were lifted on November 10, 2020 as investors believed in the rebound of aviation businesses, which are deemed as the leverage for the other economic sectors. Shares of the two largest Vietnamese airlines – Vietjet (VJC) and Vietnam Airlines (HoSE: HVN) - outstood among other stocks. Vietjet shares hit the ceiling price on November 10, soaring 7% to VND113,400 (approx. US$4.8) apiece with asking volume being down to zero and bidding volume increasing up to 238,000 shares. Vietnam Airlines shares jumped 5.6% VND27,500 (approx. US$1.1) apiece while the Airports Corporation of Vietnam stock (UpCom: ACV) also headed north, up by 5.4% to VND66,400 (approx. US$2.8) apiece.

The growth of Vietjet shares contributed 1.12 points for the benchmark VN-Index on November 10, helping the index beat the resistance of 970 points, which was its previous peak in October, and entered a growing trend.

Foreign investors on the other hand, ceased their net sale for five consecutive sessions on November 13. They instead poured money into VJC, partly making the stock one of the trading highlights on HoSE with transaction value totaled more than VND166.3 billion (approx. US$7.2 million).

Flight network recovery, cheap tickets and stimulus for tourism demand are measures that airlines are carrying out at the time. Industry experts believe that Vietnam’s aviation is set on the path of positive recovery with Vietjet in particular gaining certain advantages over other carriers. The airline is launching new products and services to meet the increasing demand of the customers.

Vietnam has fully resumed its domestic flight network and is ready to reopen international flights as soon as Vietnamese government gives the green light, helping to achieve economic development while taking precautionary measures to prevent COVID-19.

 

ABOUT THE AUTHOR

Theodore Koumelis

Co-Founder & Managing Director

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.