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 .
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.