Vietnam's airport manager scheduled for IPO

Thanh Nien News

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Noi Bai International Airport in Hanoi. Photo: AFP Noi Bai International Airport in Hanoi. Photo: AFP
The initial public offering of the state-owned Airports Corporation of Vietnam (ACV) is expected to occur during the second quarter of 2015, the Thoi Bao Kinh Te Saigon Online reported.
The paper reported that the state plans to maintain 75 percent ownership of the company, which has an estimated value of roughly US$1.74 billion.
The ACV currently operates 22 international and domestic airports across Vietnam.
The measure is aimed to raise funds for the Long Thanh International Airport, which is scheduled to be built this year some 40 kilometers (25 miles) northeast of Ho Chi Minh City, according to Minister of Transport Dinh La Thang.
The airport will require around $5.6 billion to complete the first stage of its development project by 2020 -- around 53 percent of which will come from the state budget and official development assistance (ODA) loans.
The new airport is expected to receive 25 million passengers by 2020 and double that by 2030.
The ACV, which was established in 2012 as a merger between three airport corporations in the north, central, and south, now manages 24 member companies. Last year two of its members, namely the Southern Airports Services Company and Saigon Ground Services, held IPOs.
The company reported a turnover of more than $394.56 million last year, a year-on-year increase of 0.86 percent, and $57.8 million in pretax profits.

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