Hong Kong Airlines and Grand China Airlines plan USD1.9bn IPO
Hong Kong Airlines President Yang Jianhong reportedly stated Grand China Airlines, parent of Hainan Airlines, and Hong Kong Airlines, 45% controlled by Hainan Airlines, plan to raise a combined HKD15 billion (USD1.9 billion) in an IPO in Hong Kong in 2011 (South China Morning Post/Reuters/Shanghai Daily, 23-Nov-2010). Grand China Airlines reportedly plans to raise more than HKD10 billion (USD1.3 billion) in 1H2010 while Hong Kong Airlines is selecting underwriters for a planned HKD5 billion (USD644 million) IPO in 3Q2011. Mr Yang stated the application for Hong Kong Airlines to list as a "red chip" or overseas registered Chinese company, had been approved by the State Council. Grand China, which postponed a share sale plan two years ago due to the global economic crisis, is also the parent of China Xinhua Airlines, Shanxi Airlines and Changan Airlines. Hong Kong Airlines, which operates a fleet of 18 aircraft, plans to use the proceeds of its IPO to fund aircraft acquisitions with 33 widebody Airbus aircraft on order.