27-Oct-2010 9:12 AM

Cebu Pacific offering is largest global LCC IPO

Cebu Pacific confirmed (26-Oct-2010) it raised PHP23.3 billion (USD539 million) prior to exercising the over-allotment option for its IPO, making it the largest international LCC IPO offered to date. CEB sold 186.6 million shares, or 30.4% of total outstanding shares, to investors in the Phillipines and abroad, priced at PHP125 per share. The IPO is the largest ever conducted in the Philippines in US dollar terms. The primary proceeds will be used for aircraft acquisition. By 2014, the airline will have taken delivery of 22 new A320 aircraft and operate one of the largest Airbus fleets in Southeast Asia. According to Bloomberg data, other LCCs with notable IPOs include Southwest Airlines (USD7.2 million), Ryanair (USD159.6 million), AirAsia (USD220.3 million) and, more recently, Tiger Airways (USD175.9 million). Owner JG Summit expects to use its estimated USD400 million share of the funding for debt repayment (Bloomberg, 26-Oct-2010). [more]

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