Air China invites bids for Hong Kong IPO in 2004: report
( 2003-12-03 15:15) (Agencies)
The mainland's flag carrier
Air China has invited bids from investment banks for an initial public offering
(IPO) in Hong Kong that could raise up to US$500 million, a report said.
The Financial Times reported China National Aviation Holding Co, the parent
of Air China, has invited a small group of underwriters to pitch for the IPO,
which is targeted for 2004. It is expected to select the advisers early next
year.
Air China, the country's largest airline in terms of assets, had initially
planned to list last year but postponed the IPO to 2004. The report did not give
a reason for the postponement.
Bankers said Air China could raise US$300-500 million by selling a stake of
some 25-30 per cent to investors.
That would give Air China a market capitalisation of up to two billion
dollars, in line with the valuations of Hong Kong-listed China Eastern Airlines
and China Southern Airlines.
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