Sovico Aviation bids for Vietjet shares
admin 24-11-2020, 20:37
Sovico Aviation bids for Vietjet shares
Vietjet planes. (Photo: courtesy of the airline)

HCM City (VNA) – 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 carried out between November 12 and December 11, 2020 via put-through and/or order-matching transactions.

Such move by Sovico Aviation, Vietjet’s blockholder, shows its confidence in Vietjet’s recovery post COVID-19 due to the airline’s effective and flexible business solutions in response to the ups and downs of the aviation market.

Vietnamese airlines’ stocks lifted on November 10, 2020 as investors believed in the rebound of aviation businesses, which are deemed the leverage for 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 percent to 113,400 VND (approx. 4.8 USD) apiece with asking volume being down to zero and bidding volume increasing up to 238,000 shares.

Vietnam Airlines shares jumped 5.6 percent to 27,500 VND (approx. 1.1 USD) apiece while the Airports Corporation of Vietnam stock (UpCom: ACV) also headed north, up by 5.4 percent to 66,400 VND (approx. 2.8 USD) 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, meanwhile, finally 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 166.3 billion VND (approx. 7.2 million USD).

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 allows to do so, meeting the double targets of COVID-19 prevention and economic development./.

VNA
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