ACV to become UpCom heavyweight on November 21

Airport Corporation of Vietnam (ACV) will be officially listed on the Hanoi Stock Exchange (HNX)’s UpCom trading platform on November 21.

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The information was announced by HNX on November 16. Accordingly, 2.17 billion ACV shares, representing a registered capital of VND21.77 trillion ($973.6 million), will be available for trading at the initial reference unit price of VND25,000 ($1.1) under the code ACV.

With the registered capital of VND21.77 trillion ($973.6 million), ACV will become the firm having the largest chartered capital on UpCom.

The state will retain 95.4 per cent of the Ho Chi Minh City-based firm.

ACV is the largest state-run terminal operator managing and running 22 international and domestic terminals in Vietnam, with 65 per cent of its revenue coming from the sales of duty-free goods.

It also works on 19 investment projects with the total investment capital of VND5.8 trillion ($261.5 million). Some of its larger projects include the expansion of Tan Son Nhat International Airport (VND1.06 trillion ($47.8 million)) and Phu Quoc Airport (VND696 billion ($31.4 million)), and the construction of Cat Bi International Airport’s parking lot costing VND1.5 trillion ($67.6 million).

ACV planned to sell more than 166 million shares to French airport management firm Aeroport de Paris (ADP) at the starting price of at least VND13,100 ($0.57) per share. However, at present, ADP is hesitant because of the sheer amount of issues left to negotiate.

Notably, at the September 5 meeting with the Ministry of Transport (MoT), an ADP representative sought the MoT’s opinion about ADP’s proposals on determining the rights and role of ACV in managing the state’s assets, the franchise fees, as well as ADP’s leeway to adjust airport service fees.

In addition, ADP is concerned about the feasibility of ACV’s joining in the expansion and upgrading of Tan Son Nhat International Airport as well as building Long Thanh International Airport.

If the ministry gives sufficient response, by the end of 2016 ADP may become an ACV’s  investor.

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By Ha Vy