A visual from ACV's website.
State-run Airports Corporation of Vietnam (ACV), the biggest airport developer in Vietnam, expects to reap some 2.2 trillion dong (roughly $100 million) from selling shares to France’s Aeroport de Paris (ADP).
ACV plans to sell 166.16 million shares, equivalent to a 7.4% stake, to the French firm at a minimum initial price of 13,100 ($0.58) each, according to a plan submitted at ACV’s first shareholders meeting on March 16.
Some individual shareholders were upbeat that ACV could sell shares to ADP at better prices, given a wide portfolio of projects that the firm is about to develop.
Under a prime minister-approved equitization plan, ACV will issue an additional 166 million shares to lift its registered capital to 22.43 trillion dong ($1 billion) and sell 448 million shares or a 20% stake to strategic investors.
The airport developer expects to earn a pretax profit of 2.06 trillion dong ($91.8 million) on revenue of 12.09 trillion dong ($540 million), and to pay a dividend of 5% this year.
The firm approved a plan to invest 5.83 trillion dong ($260.5 million) in improving airports under its management this year. The projects include the expansion of Tan Son Nhat International Airport at a cost of $47.6 million, and the upgrade of the passenger terminal of Phu Quoc airport costing $31 million.
Regarding the Long Thanh International Airport project, the would-be largest of its kind in the country, ACV is selecting consultants for the feasibility study, which is scheduled to be submitted to the government and approved by the parliament by the third quarter of 2017.
The controversial Long Thanh airport, to be located near Ho Chi Minh City, will have capacity of 25 million passengers per year in the first phase, to be finished by 2025, and 100 million passengers afterwards.
The airport has an estimated cost of $15.66 billion, of which the first phase will cost $5.32 billion.