Singapore’s Tiger Airways is set for an initial public offering next monday in a bid to help finance the purchase of a fleet of 50 Airbus A320s.
The low-cost carrier, which is 49-percent owned by Singapore Airlines has enlisted Morgan Stanley, Citigroup and Singapore’s DBS bank to manage the IPO, and is planning to sell up to 51 per cent of its shares.
Media reports have quoted that Tiger could raise anything between $200m and $1bn through the IPO.
“The existing investors will stay invested,” one of the sources told Forbes. However it was unclear if shareholders would subscribe to the offer, however.
Tiger’s other owners are: Singapore state investor Temasek, which holds 11 percent stake; RyanAsia, a company controlled by the founding family of Irish airline RyanAir, with 16 percent; and investment firm Indigo Partners LLC, which owns the remaining stake.
News of the IPO plan follows hot on the heals of a disclosure that its rival Malaysian Air Asia, south-east Asia’s largest low-cost carrier, could seek a secondary listing on the Bangkok stock exchange.
Tony Fernandes, founder of the Malaysia-based carrier, said recently that discussions could eventually lead to a merger between Air Asia and its Thai and Indonesian affiliates to create a single stock listed on three exchanges.