Hanoi (VNA) - The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has registered to sell 7.6 million shares of the Vietnam Airlines Corporation, which is listed as HVN on the stock market.

The transaction is expected to take place from January 24-February 22.

This is part of more than 22.4 million shares, equivalent to 1.8 percent of the chartered capital of Vietnam Airlines that Vietcombank bought in the airline’s initial public offering in late 2014. The bank spent 544.12 billion VND (23.9 million USD) to buy the shares, or 22,300 VND for each share. At the current market price of Vietnam Airlines’ shares at some 63,700 VND each, Vietcombank can earn an estimated 484 billion VND from the sale of its 7.6 million shares after more than two years of holding. Compared to six months ago, the stock has nearly tripled in terms of market value. If successful, Vietcombank’s holdings at Vietnam Airlines will reduce to 1.2 percent. The shares of Vietnam Airlines and VJC shares of budget carrier Vietjet Air are two aviation stocks that have grown fast in the past few months. The growth of share prices comes mainly from positive business results in late 2017 and early 2018 in the aviation industry. Last year, Vietnam Airlines Corporation, including Jetstar Pacific and Vietnam Air Services Company (VASCO), recorded a consolidated revenue of 88.4 trillion VND (3.88 billion USD) and pre-tax profit of more than 2.8 trillion VND, exceeding 72 percent of its plan and up 8.3 percent year on year, respectively. This is the highest level of revenue and profitability the firm has made in its history. According to stock investors, the increasing demand for air transportation during Tet (Lunar New Year) holiday is another reason for the acceleration in prices of aviation shares in recent times. Vietnam Airlines has traded more than 1.2 billion shares on UpCOM, making it a large-scale public company in the leading group of capitalisation value in the stock market. The airline plans to put all of its shares on HCM Stock Exchange (HOSE) in the second quarter of this year. Meanwhile, it will continue to issue additional shares to existing shareholders to increase charter capital and reduce State ownership. Accordingly, in the first quarter of this year, Vietnam Airlines plans to increase charter capital by issuing additional 191 million shares at 10,000 VND each to existing shareholders. Vietnam Airlines has chartered capital of nearly 12.28 trillion VND, of which the State holds 1.057 billion shares, equivalent to 86 percent of chartered capital. Of the remaining shareholders, ANA Holdings Inc., Japan’s largest aviation group, holds 107 million shares, representing nearly 8.8 percent of chartered capital.-VNA