Vietnam’s Bamboo Airways expects a market capitalisation of around $1 billion in its IPO. The carrier plans to raise around $100 million as it plans to go public.
The airline will list about 400 million of its shares either in the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange.
According to Nguyen Khac Hai, Deputy Chief Executive Officer at Bamboo Airways, the initial trading price of Bamboo Airways’ shares could be around $2.59 per share. The shares are expected to trade in the first quarter of 2020.
With regard to its IPO, Bamboo Airways’ chairman Trinh Van Quyet told the media that, “The fundraising will help us to expand our fleet as we want to take 30 percent of the domestic market next year.”
With the funds raised in its IPO, Bamboo Airways’ also plans to become the first Vietnamese carrier to fly direct flights to the US. The company expects to begin US operations by the end of 2020.
According to reports, the carrier is also expecting to receive its first Boeing 787 aircraft by the end of this month. It also announced that it will soon begin flying to Prague in Czech Republic from Hanoi. It will operate its Boeing 787-9 to Prague thrice a week starting in the first quarter of 2020.
Bamboo Airways was launched earlier this year with an investment of around $56 million. Bamboo Airways currently operates 13 leased aircraft on 25 domestic and international routes. After acquiring permission from Vietnam’s Ministry of Transport, the carrier plans to expand its fleet to 30 by March 2020. It also plans to expand its fleet to 100 aircraft by the end of 2024.