Gokongwei-led Cebu Air, Inc. will use the bulk of funds to be raised from a share sale to buy up to 20 more aircraft within five years, an executive of the budget airline’s parent said on Tuesday.
Cebu Air, which operates budget carrier Cebu Pacific, has yet to set the date for its first-time listing on the stock exchange, from which it plans to raise P12 billion. It has obtained clearance from regulators.
“It’s going to be for capital expenditures for purchasing airplanes. We have a purchase order from Airbus for 15 Airbus A320 in the period of 2010 to 2015 and an option to buy five more," said Bach Johann M. Sebastian, senior vice-president for corporate planning of listed JG Summit Holdings Philippines, Inc.
Documents showed the carrier needed to make P9 billion in advanced payments to increase its fleet to 49 by 2014.
Sebastian said going public is only one option, and that the company could also borrow from export credit agencies. Cebu Pacific can also tap the lease market, he said.
The airline is planning to list 125.3 million new common shares with a par value of a peso each, to be offered to big investors for up to P95 apiece. A total of 110.3 million secondary shares will be listed at the same price.
JG Summit will also list 35.3 million shares it owns. About 18.4 million more shares will be listed as part of an employee stock option plan.
The company originally planned to go public in 2008 but postponed the listing due to difficult market conditions.
Cebu Air turned around last year by posting a net income of P3.184 billion, from a net loss of P3.259 billion in 2008. Operating income almost doubled to P3.164 billion from P1.727 billion in 2008.
David Mikael Taclino
Inyu Web Development and Design
Creative Writer
0 comments:
Post a Comment