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Wednesday, August 25, 2010

Cebu Pacific revives IPO plan, eyes bigger proceeds

Cebu Air Inc. is reviving its bid to conduct an initial public
offering (IPO) and this time, is projecting bigger proceeds at P32.19
billion, 26% more than its original target of just about P25.7
billion.

In a filing with the Securities and Exchange Commission (SEC), Cebu
Air which operates budget airline Cebu Pacific, said it will list
214.632 million primary and secondary shares at an offer price of up
to P150 per share, much higher than the initial target of P95 a piece.

Cebu Air has tapped Citigroup Global Markets Limited, Deutsche Bank AG
(Hong Kong Branch) and J.P.
Morgan Securities Ltd. as global coordinators and international lead
managers, while ATR-Kim Eng Capital Partners Inc. was hired as
domestic lead underwriter.

In its revised IPO proposal, Cebu Air will sell 186.637 million
primary and secondary shares that will
generate as much as P27.99 billion in proceeds, while another 27.995
million shares worth P4.19 billion
is being set aside to cover overallotments.

Cebu Air is pursuing the IPO amid the labor problems besetting rival
Philippine Airlines.

Cebu Air's IPO was originally scheduled for April but was put at bay
due to uncertain market conditions as well as the Philippine national
elections.

At that time Cebu Air's application, already approved by the SEC and
the Philippine Stock Exchange, involved the listing of up to 125.25
million primary shares and up to 110.31 million secondary shares at a
target price at P95 per share. Another 35.3 million common shares were
also set aside to cover
overallotments.

In the original filing, Cebu Air said it will use Proceeds from the
public offering for pre-delivery aircraft payments.

Last May, Cebu Air increased its Airbus A320 orders by 7, doubling its
seat capacity in 5 years with a total of 51 aircraft by 2014.

The 22 total Airbus A320 orders, including the additional 7 will
require an investment of some $1.4 billion.

These new aircraft will be enable the airline to increase flight
frequencies in existing routes as well as to expand to new domestic
and international routes, including northern part of China, Korea
and Japan.

Posted via email from Aviation Professionals dot Org

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