India's Jet Airways has closed an initial public offering that values the airline at Rp94.9 billion ($2.2 billion). The airline will use the proceeds to repay debt and fund capital expenditures, including additional aircraft, a new training centre and upgraded maintenance capabilities.
The carrier says its offer of 17.26 million shares at Rp950-1,125 was 16 times oversubscribed, with 90% of the applications received by 24 February closing at the top end of the band. The shares will begin trading next week in Delhi and Mumbai at Rp1,100.
Chairman Naresh Goyal, who previously owned 100% of Jet through his company Tailwinds, will keep an 80% stake in the fast-growing carrier.
Jet operates 34 Boeing 737s and eight ATR 42s. But the carrier plans to take delivery this year of three Airbus A340-300s subleased from South African Airways, plus seven additional 737-800s leased from GE Capital Aviation Services and Royal Bank of Scotland. Jet also plans to firm up this year an order for 10 more 737-800s for delivery in 2006-7. A second 737 simulator will also be acquired.
All three A340s and two of the 737-800s will be delivered over the next month, with the A340s to be used for a new London service and the 737-800s to launch flights to Kuala Lumpur and Singapore. The two 737-800s will have16 international business class seats, with 58in (1.47m) pitch compared with 38-40in on Jet's domestic 737s, and 124 economy seats.
Source: Flight International
