Hong Kong Airlines will apply for listing approval from the Hong Kong Stock Exchange for a US$500 million IPO that would be the city's first dual-currency public offering.
The airline plans to submit a listing application to the stock exchange on September 1st to float a Chinese yuan and Hong Kong dollar-denominated deal. The listing is expected to be during the fourth quarter.
The airline is planning offer half of the shares in the retail tranche of the IPO in yuan-denominated offerings. The retail portion will make up 10% of the total IPO. Investors who buy from the institutional tranche of the IPO, accounting for 90% of the deal, will be allotted some yuan-denominated shares if there is sufficient demand for them.
China has been moving to loosen restrictions on its currency as part of efforts to internationalize the yuan, with Hong Kong, whose currency is pegged to the US dollar, acting as the de facto centre of the nation's test of allowing banks and individuals to freely trade the yuan abroad.
The share offering would be the latest yuan-denominated product offered to investors in Hong Kong.
The airline has stated it is seeking an IPO in order to fund expansion plans, and to combat high fuel prices and competition from rival Cathay Pacific.
Hong Kong Airlines to apply for dual currency IPO
