Bamboo Airways plans US IPO in Q3
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Private carrier Bamboo Airways is considering an initial public offering of shares in the U.S. this year to raise $200 million.
The IPO is expected to take place in the third quarter, with the company likely to offer a 5-7 percent stake to secure a market capitalization of up to $4 billion, quoted its chairman, Trinh Van Quyet, as saying on Wednesday.
It is preparing for the issuance together with an international auditing firm and plans to list on the New York Stock Exchange.
Last month, Quyet had announced the airlines’ plans to list 105 million shares on either the Ho Chi Minh Stock Exchange or Hanoi Stock Exchange at an initial price of VND60,000 ($2.61), but on Wednesday he said that has now become “a backup plan.”
“The US IPO will be part of our efforts to expand our services globally.”
It expected to operate charter flights to the U.S. from July this year and thrice-weekly commercial flights from HCMC to San Francisco from September.
The airline has received a permit from the U.S. Department of Transportation to carry passengers and cargo to that country.
This year it also plans to expand its fleet from 30 aircraft to 40, and launch flights to other new destinations like Australia, Germany, Japan, and the U.K. if the Covid-19 pandemic is under control.
It currently flies on 60 domestic routes.
Last year, it carried over seven million passengers to account for a 20 percent market share, and hopes to increase it to 30 percent this year.
Questions & Answers
Q.What is the primary reason Bamboo Airways is pursuing a US IPO instead of a domestic listing?
What is the primary reason Bamboo Airways is pursuing a US IPO instead of a domestic listing?
The chairman stated the US IPO is part of the airline's broader strategy to expand its services globally. A domestic listing on the Ho Chi Minh or Hanoi Stock Exchange is now considered a backup plan for the company.
Q.When does Bamboo Airways plan to begin operations to the United States?
When does Bamboo Airways plan to begin operations to the United States?
The airline expects to launch charter flights to the U.S. From July this year. Regular thrice-weekly commercial flights from Ho Chi Minh City to San Francisco are planned to commence from September.
Q.Which international destinations does Bamboo Airways plan to add to its network this year?
Which international destinations does Bamboo Airways plan to add to its network this year?
Alongside flights to the US, Bamboo Airways plans to launch services to Australia, Germany, Japan, and the U.K. This expansion is contingent on the Covid-19 pandemic remaining under control.
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