Tue, Oct 15, 2019 - Page 10 News List

Bamboo Airways expects US$1bn IPO market cap

Bloomberg

People prepare to check in at a Bamboo Airways Co counter at Noi Bai International Airport in Hanoi on Sept. 10.

Photo: EPA-EFE

Vietnam’s Bamboo Airways Co Ltd expects a market capitalization of as much as US$1 billion at its planned listing in the first quarter of next year.

The start-up carrier plans to list about 400 million shares on either the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange as early as January, deputy chief executive officer Nguyen Khac Hai said.

Bamboo Airways expects to set the initial price for its trading debut in the range of 50,000 dong to 60,000 dong per share, he added.

“We expect the stock market to do well from now until next year as the macroeconomic conditions are very positive,” Hai said.

In Vietnam, companies often sell shares months before a listing in an exchange.

However, Bamboo plans to list shortly after the share sale.

Bamboo Airways chairman Trinh Van Quyet last month said that the company expects to raise about US$100 million from the initial public offering (IPO).

The carrier’s registered capital would increase to about 4 trillion dong (US$172.3 million) from 2.2 trillion dong after the share sale, Hai said.

The airline, which joined Vietnam’s crowded skies in January last year, seeks to tap into the nation’s growing middle class.

The country’s airports last year handled 106 million passengers, up about 13 percent from the previous year, the Civil Aviation Authority of Vietnam said.

Conglomerate Vingroup JSC plans to start Vinpearl Air flights next year. Vietravel Airlines, owned by Vietnamese tour operator Vietravel, also expects to begin offering fights next year.

Bamboo Airways operates 13 aircraft on 25 domestic and international routes.

The company is to receive five more new airplanes this month and expects to increase its fleet to 25 aircraft by the end of this year and to 30 next year, Hai said.

It plans to be the first Vietnamese carrier to operate direct flights to the US, expected in late next year, Quyet said in August.

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