Tiger Airway IPO Fact Sheet

ISSUE STATISTICS

Offer size: 155.556m new shares + 9.599m vendor shares

Placement Tranche – 152.769m shares

Price: S$1.65 (Maximum Offer Price)

NAV per share (post-IPO): S$0.285

Historical PE: n.a.

Market Cap (post-IPO): S$891.0m

Open: 13 Jan 2010

Close: 18 Jan 2010, 8.00am

Price Determination: 18 Jan 2010

Trading: 22 Jan 2010 (on “ready” basis)

Lead Manager: Citigroup, Morgan Stanley, DBS

Revenue     S$m yoy % chg

FY08         303.8 +77.3%

FY09         378.0 +24.4%

Net profit S$m

FY08      9.9 .

FY09      (50.8)

Background

Tiger Airways Holdings Ltd (Tiger Air) is a low-fare, low-cost airline focused on Asia and Australasia. It currently operates out of three bases in Singapore, Melbourne and Adelaide. Tiger Air aims to maximise profitability by developing a portfolio of routes with consistently high passenger load factors and carefully managing capacity. The airline operates a fleet of 17 Airbus A320 family aircraft and has committed to purchase additional Airbus A320s, which will increase the size of its fleet to 68 by Dec 15.

Tiger Air derives its operating revenues mainly from passenger seat sales, accounting for 97.8% and 95.1% of total revenues for FY07 and FY08, respectively. Ancillary revenues are generated through additional products and services such as additional baggage services, seat selector fees, in-flight sale of beverages, food and merchandise, as well as commissions earned through the distribution of travel insurance, accommodation and car rental services.

Tiger Air also charges a convenience fee for most reservations made through its website.

Use of Proceeds

Based on the maximum offer price, Tiger Air intends to use the proceeds for funding the equity portion of its planned acquisition of Airbus A320 aircraft and the associated aircraft pre-delivery payments (S$166m), establishing new operating bases (S$10m), repayment of all outstanding short-term loans (S$50.4m) and working capital (S$20.4m).

Disclaimer: This blog post contains time-sensitive information. Readers are advised to seek professional consultation before making any investment decision. The Neo Dimension will not be liable for any investment loss made in this offer.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.