Starlux Airlines is hoping to raise $164 million in funds to improve its financial structure and enrich the working capital, the airline said in a Taipei Exchange filing. In September 2022, the airline raised capital of $100 million.
“The board of directors had approved the issuance of no more than 300 million common shares. The issue price will be announced separately after the price is set, and the chairman, Chang Kuo-wei has been authorised to determine whether the market conditions are favourable before triggering the process,” the airline said in a statement.
The move comes at a time when the price of Starlux shares has soared in the past two weeks in seven consecutive trading sessions from February 10 to February 20 on the Emerging Market of the Taipei Stock exchange. Last week, the bourse set trading restrictions on the shares because of their volatility in recent sessions.
StarLux Airlines has seen its revenue grow sharply in recent months as COVID-19 border controls have been lifted. The airline had revenue of $49.9 million in sales in January 2023, up 58% from last month. The airline is expecting to post its first profit in 2023.
As of February 2023, StarLux Airlines' fleet consisted of 13 A321neos, four A330neos and two A350-900s.