Estimates show that this airline will issue a maximum of 996.2 million shares, equivalent to raising nearly VND 10 trillion.
Bamboo Airways Joint Stock Company has just announced an extraordinary general meeting on April 10 to approve the plan to offer private shares.
Specifically, the company wants to offer private shares with an expected maximum issuance scale of 35% of the share capital after issuance.
Currently, Bamboo Airways’ charter capital is at VND 18.5 trillion. Estimates show that the airline will issue a maximum of 996.2 million shares, raising nearly VND 10 trillion, thereby increasing the charter capital to nearly VND 28.462 trillion.
The expected implementation time is in 2023. The shares after issuance will not be restricted from transfer.
According to Chairman of the Board of Directors Nguyen Ngoc Trong, the purpose of the issuance is to continue implementing restructuring, debt restructuring, and increasing charter capital to meet the company’s operational and development needs.
In a related development, a representative of Bamboo Airways recently confirmed that the company has found a new investor to replace the former shareholders, former Chairman Trinh Van Quyet and related shareholders of FLC Group.
In addition to paying the share purchase price, the new investor has also agreed to inherit and be responsible for paying principal and interest obligations for previous loans that the old shareholders used the Bamboo Airways shares as collateral.
At an extraordinary general meeting of FLC Group held on March 4, Mr. Le Ba Nguyen, Chairman of the FLC Board of Directors, also announced that the company has the plan to transfer its ownership shares in Bamboo Airways.
According to FLC’s leader, the conglomerate’s investment in the airline is currently VND 4.015 trillion, equivalent to 21.7% of Bamboo Airways’ charter capital.
In 2021, the airline operated without profit, so FLC had to set aside provisions for the investment of over VND 373 billion. This provision continues to increase significantly in 2022 to VND 3.642 trillion. This is also one of the investments that caused FLC to set aside the highest provisions by the end of 2022.