Hong Kong Airlines aims to raise $300 million via Q3 IPO

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Hong Kong Airlines, a division of China's HNA Group, plans to raise $300 million through an initial public offering (IPO) in the third quarter of the year.

"Initially, the IPO was planned for the second quarter [of 2012], but we were advised to delay it a little because of fluctuations in the stock market," said a spokeswoman.

The funds raised will be used to pay for aircraft purchases, building of a new training centre for its crew and a new headquarters at the Hong Kong International Airport, she added.

The carrier has confirmed an order for 10 Airbus A380s, due to be delivered from 2015.

In November, the airline announced it will receive more than 50 new aircraft over the next four years to expand its international and Chinese networks.

This year alone, it expects to receive between six and 10 Airbus A320s as well as three Airbus A330s. The A330s will be configured with business-class seats.

The airline will use the new aircraft to increase the frequency on its services to Shanghai and Japan, as well as to start new services to Taipei and Kaohsiung. It will also operate A330s on its services to Beijing, instead of Boeing 737s, thereby increasing capacity.

Its director, Adam Tan, has previously said that the group plans to build Hong Kong Airlines into a much bigger player in the market to compete with flag carrier Cathay Pacific.

Hong Kong Airlines now operates a fleet of eight A330-200s and 10 737s, together with its sister carrier, Hong Kong Express.