Vietravel approved to list shares on UPCoM
The Hanoi Stock Exchange on Wednesday approved the listing of over 12.64 million shares of leading tour operator Vietravel on the UPCoM.
The shares will have the code VTR, but Vietravel has not disclosed a specific date for the listing.
On the same day, the company also closed the list of shareholders whom it will ask for approval to issue VND700 billion ($30.2 million) worth of bonds that will be used to fund Vietravel Airlines, a wholly-owned subsidiary.
The tour operator revealed in April that it had applied for a license to launch Vietravel Airlines, which was established in Thua Thien – Hue Province in February with a charter capital of VND700 billion ($30.2 million).
Vietravel was formerly known as Tracodi Tour, which operated under state-owned Transportation Development Investment Corporation (Tracodi). In 2014 the Ministry of Transport sold Tracodi Tour off to private investors.
The company operates local and international tours, expat services, and charter flights with partners.
According to 2018 consolidated financial statements, the company achieved VND37.2 billion ($1.61 million) in profit after tax, up 55.8 percent year-on-year, and revenue of VND7.23 trillion ($312.22 million), up 17 percent.
The Unlisted Public Companies Market (UPCoM), which operates under the Hanoi Stock Exchange (HNX), is effectively a mezzanine exchange set up to encourage unlisted public firms to participate in the securities market, with a view that they may later transfer onto the two main markets HNX or HoSE (Ho Chi Minh Stock Exchange) later.
Vietnam currently has six commercial airlines licensed to fly: Vietnam Airlines, Vietjet Air, Jetstar, VASCO, Bamboo Airways and the latest Vietstar Airlines. Thien Minh and Vietravel Airlines are companies vying to be the seventh.