Vietnam's airport operator ACV to issue 1.4 bln shares in record dividend

State-owned Airports Corporation of Vietnam (ACV) plans to issue over 1.4 billion shares as stock dividends at a 64.58% ratio, its all-time high.

The ratio means shareholders will be granted 64.58 new shares for every 100 they hold.

This will be the first time ACV's dividend to be paid in shares. The issuance will be funded by ACV’s retained earnings as of December 31, 2023, according to a Monday resolution.

The share distribution is expected in 2025, pending written confirmation from the State Securities Commission - the country’s stock market watchdog - acknowledging receipt of all required documents.

This marks ACV’s first stock dividend since its equitization and listing in 2016. The airport operator had previously paid cash dividends of 6% to 9% during its first three years on the exchange, before suspending payouts in 2019.

If successful, ACV will raise its charter capital from VND21.77 trillion to nearly VND35.83 trillion ($1.36 billion).

As of December 23, 2024, 95.4% of ACV shares were held by the Ministry of Finance, its 2024 annual report unveiled.

At its 2025 AGM in June, ACV said it is awaiting feedback from state authorities on its 2024 profit distribution plan and will seek shareholder approval through written consultation or an extraordinary general meeting.

ACV currently holds a monopoly on aviation services for both domestic and international airlines, including security, ground handling, passenger services, and take-off and landing operations.

The corporation has been tasked with managing, operating, and investing in all 22 airports across Vietnam, of them nine international and 13 domestic.

In Q1/2025, ACV posted revenue of about VND6.37 trillion ($243.46 million), up over 12% from a year earlier. After deducting costs and expenses, the company reported a post-tax profit of VND3.01 trillion ($115.06 million), marking a modest increase of around 6% from the same period last year.

The corporation expects its 2025 pre-tax profit to decline 17% year-on-year to VND10.53 trillion ($402.56 million) due to foreign exchange losses.

This year, ACV aims for nearly VND22.24 trillion ($850.15 million) in revenue, up 2% from last year, according to disclosures at its 2025 AGM.

It expects to serve 119 million passenger arrivals, an 8% increase from 2024, including 45 million international travelers, a 9% rise, and 74 million domestic passengers, up 7%. Cargo throughput is projected at 1.58 million tons with 722,000 aircraft movements.

On the Unlisted Public Company Market (UPCoM), ACV shares closed Tuesday at VND93,800 apiece ($3.59).