India's Jet Airways is exploring cash-raising opportunities for its continuing expansion which may include an initial public offering. The carrier says "no specifics" have been decided but it confirms that "all of these opportunities are being considered".
Analysts expect fast-growing Jet to start its cash-raising exercise with a private placement of equity, probably between 10% and 15%. This is expected to be followed by a domestic share offering and stock exchange listing.
Jet Airways is India's largest private airline, with a domestic market share of around 40%. It operates 28 Boeing 737-400/700/800s and has eight more 737-800s on order. It also operates five ATR 72s and plans to add three more.
The carrier is wholly owned by chairman Naresh Goyal through his company Tailwinds. This was launched in 1993 following a partial deregulation of the Indian air transport sector.
Gulf Air and Kuwait Airways each held a 20% stake until 1997, when they were forced to sell their holdings to Goyal following a change in government policy barring airlines from investing in private domestic carriers.
Source: Airline Business
