Vietnam's transport ministry seeks to sell 35 pct of state airport operator

TN News

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 Phu Quoc Airport. Photo: Mai Vong

The Ministry of Transport has said it plans to allow Vietnam's sole airport manager to offer 35 percent of shares to private investors, instead of only 25 percent as previously reported.
Under the ministry's latest plan pending the government's approval, 25 percent of shares at Airports Corporation of Vietnam (ACV) will put up for sale at an upcoming initial public offering, news website Dau Tu, a publication of the Ministry of Planning and Investment, reported on Tuesday.
Another 10 percent of shares will be sold after the IPO, but it's unknown when the additional sale will take place.
At the IPO, which is slated to be held by the end of June, ACV plans to sell up to 77.8 million shares at a minimum of VND11,100 (51 cents) per share.
The ministry estimated that both the sales will generate about $400 million, which will help it fund the construction of Long Thanh Airport in the southern province of Dong Nai, to replace the country's largest airport Tan Son Nhat in Ho Chi Minh City. 
The new airport will cost around $5.6 billion for its first stage of development, set to be completed in 2020. Around 53 percent of the  will come from the state budget and official development assistance (ODA) loans.
ACV was valued at nearly VND38 trillion ($1.75 billion) as of June last year, according to the news report.
Established in 2012, the corporation currently operates 22 airports around the country. It also invests in 10 companies that provide ground services.
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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