Tiger Airways is planning to raise S$297 million ($239 million) through a rights issue and an offering of convertible securities to existing shareholders.
The Singapore-headquartered low-cost carrier will use the proceeds to fund its expansion and strengthen its balance sheet.
The estimated gross proceeds from the rights issue and preferential offering will be S$77.2 million and S$220 million respectively, with aggregate net proceeds to be about S$294 million, says the airline.
The amounts will mainly be used to fund Tiger's growing operations in Singapore and joint ventures in Indonesia and the Philippines, repay existing debt and strengthen the carrier's financial position, it adds.
By September 2015, Tiger will receive an additional 25 aircraft. The airline and its associates operate a total of 43 aircraft - all Airbus A320s.
Singapore Airlines, which has a 33% stake in Tiger, will subscribe for its entitlement and pick up any excess not subscribed to by other shareholders - provided its total stake does not exceed 49.9%, says Tiger.