Philippine low-cost carrier Cebu Pacific plans to raise about 12 billion pesos ($261.6 million) from an initial public offering (IPO) to fund the acquisition of new aircraft.
The airline will offer more than 125 million shares at a maximum offer price of 95 pesos each, says Cebu.
It filed a statement on 18 February with the Securities and Exchange Commission in the Philippines to register the shares.
It is not certain yet when Cebu will roll out the IPO as it is still waiting for regulators' approval, says B.J. Sebastian, the senior vice president for finance at JG Summit, Cebu's parent.
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Regulators are likely to take another two weeks to approve the application, he adds. "After it's approved, it usually takes four to six weeks to launch an IPO," says Sebastian.
Cebu will use most of the money raised from the IPO to fund its new aircraft orders, he adds.
The carrier has 15 Airbus A320s on order, to be delivered from now until 2014, and another five on option.
Cebu also plans to offer more than 110 million shares in a secondary offering under the same terms and conditions of the IPO, as well as over 20 million shares under its executive and employee stock plans, says the airline.
Source: Air Transport Intelligence news
