Bamboo Airways’ plans of raising $410 million via private placement of shares have been rejected by 56.4% of the shareholders during the general meeting held on April 10, 2023, local media reports. There was a total of 93 shareholders in the meeting holding about 93% of the voting shares.
The airline CEO, Nguyễn Ngọc Trọng wanted to issue 996.2 million shares and raise the charter capital to $1.2 billion.
The capital raised would be used to restructure the debts and strengthen the airline’s balance sheets.
Nguyễn Khắc Hải, deputy general director of Bamboo Airways, had urged shareholders at the meeting to vote positively. He said: “The capital increase plan is only good for Bamboo Airways. We are in debt of nearly $343 million and if we switch from borrowed capital to equity capital the finances will be better in terms of the debt-to-equity ratio. There will also be fresh funding to maintain business activities, reduce debts gradually, and continue to bring in more aircraft for growth.”
Going ahead, Trong is planning to hold talks with the shareholder and submit a new resolution for increasing the charter capital during the next general meeting.
“The Bamboo airlines’ fleet is operating at a full capacity in Q1 of 2023 and the company is expecting to break even,” Trong said sounding positive. He also anticipates Bamboo Airways making profits in the next couple of years.
Trong further added that the airline would ideally be making an initial public offering (IPO) by 2026 or 2027 and take another six to eight aircraft deliveries this year.
The airline is also planning to launch commercial flights to Ca Mau from May 2023, adding 21 airports in Vietnam to its list.