Vietnam’s Bamboo Airways expects $1bn market capitalisation from IPO

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Vietnam’s youngest airline Bamboo Airways expects a market capitalisation of as much as $1 billion from its stock listing planned for January next year, Bloomberg News reported. The carrier will list about 400 million shares on either the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange and hopes to raise about $100 million from the IPO, its chairman Trinh Van Quyet said last month.

The carrier’s registered capital will increase to about $172.3 million from $94.8 million after the share sale. Bamboo Airways expects to set the initial price for its trading debut in the range of 50,000 dong ($2.15) to 60,000 dong ($2.58) per share, deputy CEO Nguyen Khac Ha told the agency.

Bamboo Airways currently operates 13 aircraft on 25 domestic and international routes. The company will receive five more new planes this month and expects to increase its fleet to 25 aircraft by the end of this year and to 30 in 2020, the report said. It plans to be the first Vietnamese carrier to operate direct flights to the US from late 2020.

The discount carrier is the latest addition to an increasingly crowded airspace over Vietnam. Market leadership in terms of passenger numbers is heavily contested between national carrier Vietnam Airlines and private low-cost carrier VietJet, which hold 42 per cent 43 per cent market share, respectively. Other current players are Jetstar Pacific, a budget airline that is 70-per cent owned by Vietnam Airlines and 30-per cent by Australia’s Qantas. Vietnam Airlines also owns short-haul charter carrier Vietnam Air Services Co., known as Vasco, which the state airline wants to transform into a low-cost airline and rebrand it as Viet Air.

Other potential newcomers are Vinpearl Air, an airline operated by company conglomerate Vingroup, as well as Vietravel Airlines, owned by domestic tour operator Vietravel. Both are eyeing 2020 to launch the first flights.

Apart from those, there are ambitions to launch Vietstar Airlines, a short-haul carrier formed by the Vietnamese Air Force, to operate domestic flights with leased Embraer and Beechcraft jets from 2021, as well as plans by hospitality company Thien Minh Group to go into business with holiday flight company Thien Minh Aviation and seaplane operator Hai Au Aviation.

The airplane business in Vietnam can be rewarding, though. Nguyen Thi Phuong Thao, founder and CEO of VietJet Air, has made it on Forbes’ 2019 Asia’s Power Businesswomen’s list as the country’s first female billionaire at a net worth of $3.5 billion which she became after she took VietJet Air public in February 2017.

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Vietnam’s youngest airline Bamboo Airways expects a market capitalisation of as much as $1 billion from its stock listing planned for January next year, Bloomberg News reported. The carrier will list about 400 million shares on either the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange and hopes to raise about $100 million from the IPO, its chairman Trinh Van Quyet said last month. The carrier’s registered capital will increase to about $172.3 million from $94.8 million after the share sale. Bamboo Airways expects to set the initial price for its trading debut in the range of 50,000...

Auto Draft

Vietnam’s youngest airline Bamboo Airways expects a market capitalisation of as much as $1 billion from its stock listing planned for January next year, Bloomberg News reported. The carrier will list about 400 million shares on either the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange and hopes to raise about $100 million from the IPO, its chairman Trinh Van Quyet said last month.

The carrier’s registered capital will increase to about $172.3 million from $94.8 million after the share sale. Bamboo Airways expects to set the initial price for its trading debut in the range of 50,000 dong ($2.15) to 60,000 dong ($2.58) per share, deputy CEO Nguyen Khac Ha told the agency.

Bamboo Airways currently operates 13 aircraft on 25 domestic and international routes. The company will receive five more new planes this month and expects to increase its fleet to 25 aircraft by the end of this year and to 30 in 2020, the report said. It plans to be the first Vietnamese carrier to operate direct flights to the US from late 2020.

The discount carrier is the latest addition to an increasingly crowded airspace over Vietnam. Market leadership in terms of passenger numbers is heavily contested between national carrier Vietnam Airlines and private low-cost carrier VietJet, which hold 42 per cent 43 per cent market share, respectively. Other current players are Jetstar Pacific, a budget airline that is 70-per cent owned by Vietnam Airlines and 30-per cent by Australia’s Qantas. Vietnam Airlines also owns short-haul charter carrier Vietnam Air Services Co., known as Vasco, which the state airline wants to transform into a low-cost airline and rebrand it as Viet Air.

Other potential newcomers are Vinpearl Air, an airline operated by company conglomerate Vingroup, as well as Vietravel Airlines, owned by domestic tour operator Vietravel. Both are eyeing 2020 to launch the first flights.

Apart from those, there are ambitions to launch Vietstar Airlines, a short-haul carrier formed by the Vietnamese Air Force, to operate domestic flights with leased Embraer and Beechcraft jets from 2021, as well as plans by hospitality company Thien Minh Group to go into business with holiday flight company Thien Minh Aviation and seaplane operator Hai Au Aviation.

The airplane business in Vietnam can be rewarding, though. Nguyen Thi Phuong Thao, founder and CEO of VietJet Air, has made it on Forbes’ 2019 Asia’s Power Businesswomen’s list as the country’s first female billionaire at a net worth of $3.5 billion which she became after she took VietJet Air public in February 2017.

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