Singapore's Tiger Airways has filed for an initial public offering (IPO) to help it fund new aircraft purchases and repay loans.

According to a preliminary prospectus filed with the Monetary Authority of Singapore, the airline plans to divest part of a 24% stake held by investment firm Indigo Singapore partners.

In the case of over-allotment, RyanAsia's 16% stake will be offered.

The prospectus does not say how much the low-cost carrier plans to raise. The offering price will be determined next year, it says without elaborating.

Citigroup, DBS Bank and Morgan Stanley are managing the IPO.

"We intend to use our net proceeds from the offering to fund the equity portion of our planned acquisition of Airbus A320 aircraft and the associated pre-delivery statements," says the airline.

The funds will also be used to set up potential new airline and / or operating bases, to repay short-term loans and as working capital, it adds.

Tiger posted a pre-tax loss of S$47.7 million ($34.3 million) for the fiscal year ending 31 March, after it was dragged down by losses at its Australian operation.

Source: Air Transport Intelligence news