BOC Aviation will complete its global offering on 1 June 2016. The Global Offering offer total of 208,203,000S shares, comprising 104,101,500 Primary ‘New’ Shares and 104,101,500 Secondary ‘Sale’ Shares offered by Sky Splendor, an indirect wholly-owned subsidiary of Bank of China.
The final number of Sale Shares is subject to the exercise of an Over-allotment Option. The offer price was set at HK$42.00 per Share and represents a 2015 post-money price-to-book ratio of1.25x.
The net proceeds from the Global Offering, which is estimated to be approximately HK$4,246 million (US$547million), will be used to fund pre-delivery payments for orders and future purchases of aircraft to grow the Group’s owned aircraft portfolio.
The offering was 38.62 times oversubscribed. Due to the oversubscription, the total number of 15,615,200 International Offer Shares have been reallocated from the International Offering to the Hong Kong Public Offering. As a result of such reallocation, the final number f Offer Shares allocated to the Hong Kong Public Offering is 31,230,600 Offer Shares, representing approximately 15% of the total number of Offer Shares initially available under the Global Offering (before any exercise of the Over-allotment Option).
The Offer Shares initially offered under the International Offering were also well over-subscribed. Dealings in BOC Aviation shares on the HKEX are expected to commence on Wednesday, 1 June, 2016, with the stock code 2588 in board lots of 100 Shares each.
In connection with the Global Offering, the Selling Shareholder has granted an Over-allotment Option to the International Underwriters, which enables them to sell on behalf of the Selling Shareholder, at any time from the Listing Date to Thursday, 23 June 2016, up to an aggregate of 31,230,400 Shares, representing not more than approximately 15% of the total number of Offer Shares initially available under the Global Offering.
As previously announced, BOC Aviation entered into cornerstone investment agreements with China Investment Corporation, Silk Road Fund, China Development Bank International, China Life Franklin Asset Management, Oman Investment Fund, Hony Capital Group, Elion Resources Group, Fullerton Fund Management, Fosun International, Boeing and China South Industries Assets Management.
BOCI Asia Limited is the Sole Financial Adviser. BOCI Asia Limited and Goldman Sachs are the Joint Sponsors. BOCI Asia, Goldman Sachs and Morgan Stanley are the Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers. BNP Paribas Securities (Asia) and Citigroup are Joint Bookrunners and Joint Lead Managers. China Securities (International) Corporate Finance Company is a Joint Lead Manager.