Tiger Airways aims to raise S$223-S$273 million ($160-195 million) in its initial public offering, with the proceeds to be used for new aircraft, possibly a new airline or bases, and loan repayments.
The carrier is aiming for a share price range of S$1.35-S$1.65, according to an IPO document obtained by ATI. Analysts say that both the share price and proceeds from the offer will likely be toward the lower end of the proposed range due to worries about Tiger's prospects in the coming years.
The selling shareholder will be Indigo Singapore Partners, which holds a 24% stake in Tiger. Ryanasia, with a 16% share, will sell shares only in the event of an over-allotment exercise. Ryanasia is an investment company owned by the Ryan family, founders of Ryanair.
According to Tiger's website, the carrier's other major shareholders are Singapore Airlines with a 49% stake and Dahlia Holdings, a unit of Temasek Holdings, Singapore's sovereign wealth fund.
Funds raised will be used for three purposes: the partial funding of new aircraft, the establishment of a new airline or operating bases or both, and the repayment of short term loans.
The public offer will be launched on 13 January, with the listing date set for 22 January.