Published on : Wednesday, May 30, 2018
A few years ago, the airline tried to go public but eventually abandoned the plans of 2015 after failing to satisfy questions from the Hong Kong Stock Exchange.
The initial public offering in the ‘short to medium term’ was considered by the Chinese conglomerate the HNA Group’s Hong Kong Airlines. It also tapped investors to raise funds via issue of new shared and convertible bonds.
HNA is seeking to raise about $350 million by selling new shares by selling the new shares that will expand its equity base by 22 percent as per the document dated April 2018.
This will provide a pre-IPO valuation of about $1,6 billion . The company further wants to raise up to $550 million through convertible bonds or tradable bonds before the listing.
Virgin Australia Holdings, a partner of Hong Kong Airlines also raised A$150 million through a senior unsecured bonds at a coupon of 8.25 percent. It lacks an investment grade rating.
After HNA referred fund raising questions to the Hong Kong Airlines, it declined to comment.