Philippine AirAsia, the local unit of Southeast Asia’s biggest budget airline, plans to raise up to $250 million (P12.7 billion) through an initial public offering, according to the underwriter handling the deal.
“We are still reviewing the numbers and structuring the issue that could go up to $250 million,” BDO Capital and Investments Corp. president Eduardo Francisco said in a text message over the weekend.
“Timetable is not yet clear as we still… have to clear with the regulators,” he added.
Given the size of the deal, Francisco said the Philippine Airasia IPO would target both foreign and local investors.
Philippine Airasia earlier said it planned to conduct the share sale in the second half of 2017.
It could be the biggest IPO for the year after the offerings of Wilcon Depot Inc. (P7 billion), Chelsea Logistics Holdings Corp., (P5.9 billion) and Eagle Cement Corp. (P8.6 billion)
The budget airlines plans to use the proceeds from the public offering to finance the acquisition of more aircraft and construction of a new headquarters in Manila.
The airline as early as 2015 has announced plans to list its shares with the Philippine Stock Exchange.
AirAsia operates a fleet of 17 aircraft with domestic and international flights out of hubs in Manila, Cebu and Kalibo.
It is currently the third biggest airline in the Philippines, next to Cebu Pacific of the Gokongwei group and Philippine Airlines of business tycoon Lucio Tan.
Philippines AirAsia controls about 11 percent of the domestic market and 4.6 percent of the international seat capacity.
The airline company earlier announced plans to mount flights to Taipei, Hong Kong, Macau, Kuala Lumpur and Japan out of Clark.
The airline currently flies to and from Manila, Davao, Cebu, Kalibo, Caticlan, Tacloban, Tagbilaran, Puerto Princesa and Clark, with international flights to and from Shanghai, Taipei, Incheon, Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu and Singapore.
AirAsia launched commercial flights in Clark in 2012 before transferring its hub to Metro Manila following a strategic partnership with a local carrier in 2013.