Transport ministry seeks to sell 35% of state airport operator

Under the ministry's latest plan pending the government's approval, 25% 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% 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 US$5.6 billion for its first stage of development, set to be completed in 2020.

Around 53% of the  will come from the state budget and official development assistance (ODA) loans.

ACV was valued at nearly VND38 trillion (US$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 US$394.56 million last year, a year-on-year increase of 0.86%, and US$57.8 million in pretax profits.