SINGAPORE, 26 November 2020: Sovico Aviation Holdings
Company (Sovico Aviation) has registered to buy 33 million shares of Vietjet
Aviation Joint Stock Company (HoSE: VJC).
The deal will be executed by 11 December 2020 via
put-through and/or order-matching transactions.
Such a move by Sovico Aviation, Vietjet’s blockholder,
suggests confidence in Vietjet’s recovery post-Covid-19 business response to
the fluctuations in the aviation market.
Vietnamese airlines’ stocks lifted 10 November as investors
confidence 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 10 November soaring
7% to VND113,400 (USD4.8) 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 (USD1.1) apiece while the Airports Corporation of Vietnam stock
(UpCom: ACV) also headed north, up by 5.4% to VND66,400 (USD2.8) apiece.
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 the Vietnamese government
gives the green light, helping to achieve economic development while taking
precautionary measures to prevent Covid-19.