FLC Group plans Bamboo Airways IPO in the U.S.

VOV.VN - FLC Group, Vietnam’s multi-industrial conglomerate, is planning an initial public offering (IPO) of its airline, Bamboo Airways, in the United States that could raise about US$200 million, Reuters reported.

Bamboo Airways is planning to sell 5-7% of its share in the IPO this Q3 and seeking a valuation of at least US$4 billion after the listing.

“The IPO is a part of our efforts to expand services globally,” said FLC Group chairman Trinh Van Quyet. The airline has been working with an international auditing firm for the potential listing on the New York Stock Exchange.

Bamboo Airways last month announced it will list its share on the Vietnam Stock Exchange in Q3, however, Quyet told Reuters that “it was a backup plan, depending on market conditions”.

Bamboo Airways plans to increase its fleet from the current 30 to 40 by the end of this year, including two new Boeing 787-9 Dreamliners, Quyet added.

The airline is seeking to launch new routes to the U.S., Australia, Germany, Japan and the United Kingdom this year should COVID-19 pandemic improve.

It plans to conduct chartered flights to the U.S. in July, and launch non-stop commercial flights between Ho Chi Minh City and San Francisco in September, with an initial frequency of three flights per week.

This year, Bamboo Airways targets a 25% rise in pretax profit to VND500 billion.