Airports Corporation of Vietnam plans IPO, offers 20% to strategic shareholder

Visual from ACV website

The Airports Corporation of Vietnam (ACV) is looking a the possibility of selling a 20 per cent stake to a strategic shareholder, while offloading 5 per cent to the retail investors, as part of its listing process.

This was revealed by Vu Anh Minh, director of the Ministry of Transport’s corporate management department, at a recent meeting.

Minh added that the state ownership will be gradually reduced from 75 per cent to 65 per cent.

However, the final decision regarding the listing will be taken only after the ministry submits the initial public offer (IPO) schedule to the prime minister this month, for his approval. The auction is expected to happen in the third quarter.

Last month, French airfield operator Aeroports de Paris said that it was interested in a 30 per cent stake in ACV.

Also read: French airport eyes 30% in Airports Corporation of Vietnam

Last year, in December, ACV’s corporate value was determined at VND37 trillion ($1.72 billion), in which the state capital accounts for some 54 per cent.

Established in 2012 by merging three airports corporations in the north, central and the south of Vietnam, ACV is Vietnam’s largest airport operator, having interests in nine subsidiaries, affiliate companies and joint ventures. It directly manages eight international and 14 local airports.

As Vietnam opens up to private investment in the sector of transportation infrastructure, it will allow private companies to operate parts of the airports. This is expected to stimulate competition in the industry that has been long monopolised by the state players. The private investment initiative has been piloted with the opening up of the Noi Bai International Airport’s Terminal T1 and Phu Quoc International Airport.

Also read: Vietnam’s $1.8b airport operator ACV plans IPO

The ministry of transport is urging equitisation process of businesses under its management, which is likely to attract investors into the sector.

Since late 2013, 10 construction and infrastructure corporations have been privatised. Last year, these 10 firms’ total asset jumped 18.6 per cent, revenue increased 15.3 per cent, profit increased 83 per cent and salary for their employees rose by a combined rate of 22.6 per cent.

Apart from the airport operator, 2015 will see the IPOs of two highway developers, the Vietnam Expressway Corporation and Cuu Long Corporation for Investment, Development and Project Management of Infrastructure.

“I believe corporate governance within these state-owned transportation companies will improve, which will, in turn, usher in better performance in terms of operating profit. There will be more promising stocks for investors to pour their money in,” Minh commented.

Related stories:

Singapore medical unit to pick stake in Vietnam’s hospital

Vietnam hastens IPOs of state-owned firms

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.