Move expected as early as January.
Bamboo Airways plans to list about 400 million shares on either the Ho Chi Minh Stock Exchange or the Hanoi Stock Exchange as early as January.
The carrier expects to set an initial price of VND60,000 ($2.57) per share.
It published information on November 2 on stock exchange activities carried out by its shareholders and customers.
Bamboo Airways’ total charter capital is VND4.050 trillion ($174 million), equivalent to 405 million shares. According the its charter, shareholders have the right of freely transfer stocks in accordance with the provisions of the law.
Shareholders are entitled to perform and are responsible for ensuring the implementation of Bamboo Airways’ stock transfer procedures in accordance with the law and the airline’s charter.
The stock ticker BAV will be used in all transactions and related procedures. BAV will also be Bamboo Airways’ stock ticker in the over-the-counter (OTC) market.
Mr. Nguyen Khac Hai, Deputy General Director of Bamboo Airways, said the airline expects a $1 billion market capitalization after listing in the first quarter of 2020. After collecting VND2.2 trillion ($94.5 million) from an IPO, Bamboo Airways’ charter capital is expected to increase to VND6 trillion ($258 million).
Mr. Trinh Van Quyet, Chairman and CEO of Bamboo Airways, said this will also help the carrier expand its fleet and reach its goal of occupying 30 per cent of the market in 2020.
Established in 2017, Bamboo Airways is a member of the FLC Group and a pioneer in the hybrid model (a combination of traditional and low-cost carriers).
It is currently exploiting 28 domestic and international routes and plans to expand its network to 37-40 routes by the end of this year, including regular international routes to South Korea and Taiwan (China) and Southeast Asia. Its fleet will reach 30 aircraft by the end of this year and grow to 100 by 2024.
It has operated more than 14,000 flights with an average load factor of 90 per cent and an on-time performance (OTP) rate of 93.9 per cent – the highest in Vietnam’s aviation sector – from January to September this year.
Source: Vneconomictimes