Bamboo Airways expects US$2.7 billion market cap in summer listing

VIETNAM's Bamboo Airways expects a market capitalisation of US$2

24 March 2021 - 19:00
VIETNAM's Bamboo Airways expects a market capitalisation of US$2.7 billion at its listing in June or July with the government's easing of international flight, restrictions, reports Bloomberg.

The carrier, which began operations in 2019, plans to list 105 million shares on either the Ho Chi Minh City Stock Exchange or Hanoi Stock Exchange, company chairman Trinh Van Quyet said, setting the initial price at $2.60 a share.

This marks the second attempt by the carrier to list its shares after scrapping the plan last year because of the novel coronavirus outbreak. The benchmark VN Index of Vietnamese stocks has rallied 8.8 per cent this year to a near three-year high as the nation so far has mostly contained the domestic spread and started vaccinations this month.

'The market condition is very favourable' for the share listing, Mr Quyet said.

He said he anticipates the government will 'cautiously' begin lifting its ban on most commercial international flights during the summer. He plans to start Bamboo Airways flights to the US in the fourth quarter.

The carrier last year received permission from the US Department of Transportation to operate direct flights between the US and Vietnam, he said.

The government halted most commercial overseas flights for a second time after some employees of National carrier Vietnam Airlines JSC violated quarantine rules in December, leading to the nation's first local coronavirus cases in almost three months.

Analysts are sceptical of a successful Bamboo Airways listing while the pandemic continues. 'Listing would be tricky,' said Nguyen Anh Duc, head of institutional sales at SSI Securities Corp. Investors view the short-term prospects of airlines during the epidemic as 'vague', he said.

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