Cebu Pacific received approval from the Philippines’ Securities and Exchange Commission for the launch of its IPO, which will offer 235 million common shares at up to PHP95 per share (abs-cbnNEWS.com, 19-Mar-2010). 164.9 million of the shares will be offered to international investors, while the remainder will be offered to local investors. A further 35.3 million shares will be earmarked for overallotment. The carrier appointed JP Morgan Securities and Deutsche Bank as the offering’s lead managers, while ATR KimEng has been appointed the domestic underwriter. Funds raised from the offering will be used to support new aircraft purchases. Cebu Pacific plans to invest PHP9.1 billion over the next four years to increase its fleet from 29 to 47 aircraft.
Cebu Pacific receives approval for IPO
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Cebu Pacific Air is again looking at expanding in the Australia market by launching flights to Melbourne. Efforts in recent months to improve Cebu Pacific’s performance in Sydney, which was launched in 2014, are bearing fruit and the airline is confident with Melbourne it can stimulate further demand in the Philippines-Australia market.
The LCC initially added Melbourne to its network plan in 2015 after the Philippines and Australia forged an extended air services agreement. But Cebu Pacific subsequently decided to shelve plans to launch Melbourne, and has instead been using additional A330 capacity to expand in its domestic and regional international market.
Melbourne is now back on the agenda and is the next priority – leapfrogging Honolulu – for Cebu Pacific’s long haul operation. A new partnership with Melbourne-based Tigerair Australia is a key driver in making Manila-Melbourne a viable route, along with the anticipated rapid growth in Australian visitor numbers to the Philippines.
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