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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Cebgo: expansion accelerates in 2017 as Cebu Pacific Group delays ATR 72-500 phase outs
The Cebu Pacific regional subsidiary Cebgo is accelerating fleet expansion in 2017, enabling it to launch several new routes. Cebgo now plans to expand its ATR 72 fleet by six aircraft in 2017, for a total of 18 aircraft – an increase of five aircraft compared to the group’s previous fleet plan.
Cebgo has already expanded its fleet by four aircraft over the past six months, for a total of 12 aircraft, with two ATR 72-600 deliveries in late 2016 and two more deliveries in early 2017. The LCC has used the additional aircraft to launch 10 new routes, including seven entirely new routes for the group and three routes previously served by big sister Cebu Pacific Air.
Cebgo plans to take delivery of another four ATR 72-600s by the end of 2017, while it has delayed the phase out of five ATR 72-500s. Cebgo’s seat capacity will increase by more than 20% in 2017, driving a 3% increase in domestic capacity at Cebu Pacific Group as mainline capacity will be flat.
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.