Earnings from Airports Corporation of Vietnam's IPO to be used for building Long Thang International Airport.
The Ministry of Transport (MoT) will conduct an initial public offering (IPO) of Airports Corporation of Vietnam (ACV) in December.
A total of 2.243 million shares will be offered at a starting price of VND10,000 ($0.45) per share. The State will retain 75 per cent of charter capital.
Some 449,000 shares, or 20 per cent of charter capital, will be sold to strategic investors, 77,804 shares, or 3.47 per cent, will be sold at a public auction, and 1.5 per cent will be sold to employees at a preferential price.
MoT approved a valuation of ACV in June 2014 of VND38 trillion ($1.7 billion), including about VND29.769 trillion ($1.34 billion) in State capital, excluding assets at airports valued at VND2 trillion ($90.1 million).
ACV expects to earn at least VND5.6 trillion ($252.28 million) from the IPO, which will be used to fund the construction of the Long Thanh International Airport in southern Dong Nai province, which needs over $5 billion in investment.
ACV’s charter capital in 2014 was VND22.43 trillion ($1.01 billion). Last year its revenue totaled VND9.09 trillion ($409.5 million) and pre-tax profit VND1.307 trillion ($46.7 million), with a return-on-equity of almost 8 per cent.