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Biz News Korea(Eng)
S. Korea’s LCC Jin Air secures $350mn from IPO with price set at top end
- Collected
- 2017.11.28
- Distributed
- 2017.11.30
- Source
- Go Direct
The low-cost carrier (LCC) fully owned by the country’s top flag carrier Korean Air (KAL) drew overwhelming 736 institutional players in its book-building session for its IPO of 12 million shares that put the price at the upper end of its desired band of 26,800 won to 31,800 won.
At 1:35 on Tuesday, shares of KAL rose 0.31 percent to 31,950 won in Seoul trading.
The public subscription is scheduled on Nov. 29-30 ahead of its debut on the country’s main Kospi market on Dec. 8.
An official from Mirae Asset Daewoo Securities, its IPO underwriter, said that investors had faith in Jin Air’s growth potential and competitiveness due to its fleet of large-sized jets compared to its rivals engaged in short-haul flights.
A total of 30 million shares will be listed with 12 million available to the public, pushing up its market cap to 954 billion won.
It plans to use the proceeds to buy more fleets, add flights to Eastern Europe, bolster overseas sales and nurture new growth engines.
It will add four to five fleets annually to boost its fleet to 38 jets by 2020 and expand flights to 79 destinations in 52 cities around the globe. It will be the nation’s first LCC to offer flights to destinations in the Eastern European region starting 2019.
By Chung Woo-sung and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]