Ryan family backed Tiger Airways to raise funding in IPO
Published 07/01/2010 | 05:00
Tiger Airways, the Singapore-based low-cost carrier that is 16pc owned by the Ryan family, said yesterday it hopes to raise up to S$273m (€136m) this month as part of an initial public offering (IPO) that will result in it selling about 30pc of the enlarged share capital of the company.
The money will be used by Tiger Airways to pay for new aircraft and to pay off existing debt. Plans for the IPO have been circulating since late last year. Reuters reported that 94.2pc of Tiger IPO shares comprised of new shares, while the balance of 5.8pc were vendor shares held by Indigo Partners.
Indigo Partners is an investment vehicle whose backers include Ryanair chairman David Bonderman.
The Ryan family hold their 16pc stake in Tiger via their Irelandia Investments entity. They won't be selling any of their stake in the airline unless the offering is oversubscribed. They invested in the airline in 2003.
Singapore Airlines, which owns 49pc of Tiger, and Temasek, the Singapore government's investment arm, won't be selling any shares.
The indicative price values Tiger shares at 11.4 to 13.9 times forecast 2011 earnings, while the airline posted a net loss of S$51m (€25.3m) in the year to the end of March 2009.
Yesterday's confirmation came as Asia's biggest low-cost carrier, Malaysia's AirAsia, and Jetstar, the low-cost carrier owned by Qantas, said they would co-operate on buying aircraft, parts and paying for ground handling operations in a bid to reduce operating costs.
They said the move could result in cost savings of up to A$200m (€127m) a year.
AirAsia was co-founded by former Ryanair executive Conor McCarthy, who still owns a small stake in the airline.
AirAsia and Jetstar might also expand their relationship to include code-sharing and securing bigger discounts on hotel rooms they sell to fliers.