SINGAPORE (AFP) - – Singapore's budget carrier Tiger Airways on Wednesday launched an initial public offering (IPO) with the aim of raising 246.8 million Singapore dollars (178 million US) to fund its expansion plans.
Tiger kicked off the share sale soon after registering its prospectus with the Monetary Authority of Singapore, fixing a maximum price of 1.65 dollars a share.
"The under-developed low-fare, low-cost model in the majority of countries in the region presents opportunities for our future growth," said Tiger president and chief executive Tony Davis.
"We are now ready to embark on the next stage of growth, and believe that a listing will help fuel that growth," he said in a statement.
The firm said the move would make it the first budget carrier to list on the Singapore stock exchange.
Tiger Airways, which is 49 percent owned by flag carrier Singapore Airlines, said it would set aside 166 million dollars from the proceeds to pay for the planned purchase of new Airbus A320 jets.
It is also looking to establish new operating bases and airlines when the opportunities arise, as well as repay short-term loans.
Tiger said the region was poised to be the biggest travel market by 2020 and was aiming to expand its route network to take advantage of growing demand for air travel.
The carrier wants to expand its current fleet of 17 Airbus A320 jets to 68 by December 2015 as it plans to fly to more destinations within the region and in Australia.
"We intend to apply our proven low-cost airline model to offer domestic and/or international air travel in other Asian markets through the creation of additional operating airlines," said Davis.
"We also plan to increase frequency of flights on existing routes and expand operations by commencing new routes between the airports we now serve, as well as add new destinations from our existing bases in Singapore and Australia."
Tiger, which began its first commercial flights in September 2004, flies from Singapore to destinations across Asia including popular holiday spots such as Penang in Malaysia, and Bangkok and Phuket in Thailand.
It has also expanded into Australia where it offers domestic flights between key cities and towns across the continent.
In its prospectus, Tiger said it made a net loss of 50.8 million dollars and revenues of 378 million dollars in the financial year ended March 2009 compared to a profit of 9.9 million dollars on income of 303.8 million dollars in the previous year.
In the six months to September 2009, losses totalled 8.3 million dollars which was smaller than the 25.2 million dollars recorded in the same period the year before.
The budget carrier market has expanded rapidly in Southeast Asia, where Tiger Airways is competing against Malaysia's AirAsia and a host of other low-fare carriers.
