September 24, 2019 / 9:25 AM / 3 months ago

Vietnam's Bamboo Airways seeks to raise $100 mln from IPO next year

HANOI, Sept 24 (Reuters) - Vietnam’s Bamboo Airways is looking to raise around $100 million from its planned initial public offering in 2020 to expand its operation in one of the world’s fastest-growing aviation markets, the company said on Tuesday.

“The fundraising will help us to expand our fleet and increase our domestic market share to 30% from 10% now,” Bamboo Airways said in a statement.

The airline, owned by property and leisure company FLC Group , now operates 10 aircraft on 25 domestic and international routes and was just given green light by the government to increase its fleet to 30 aircraft by 2023, according to a statement on its website.

Bamboo Airways plans to be the first Vietnamese airline to launch direct flights to the United States from Vietnam, its chairman Trinh Van Quyet said last month.

Vietnam’s aviation market has seen a double-digit annual growth over the past 10 years, one of the fastest paces in the world. Last year the country’s airport served 106 million passengers, up 13% from a year ago, according to the Civil Aviation Authority of Vietnam.

Bamboo Airways planned to list its shares a year after the debut but hasn’t decided which bourse to list on yet, the statement said.

The airline has been banking on its network of golf courses to draw in visitors, especially from Northeast Asia, to its resorts across Vietnam. (Reporting by Phuong Nguyen, editing by Louise Heavens)

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