Two airlines target $2 billion in HK IPOs: report

HONG KONG (BestGrowthStock) – The parent and the Hong Kong unit of China’s Hainan Airlines Co Ltd (600221.SS: ) aim to raise a combined HK$15 billion ($1.9 billion) in initial public offerings in Hong Kong next year, the South China Morning Post reported on Tuesday.

Grand China Airlines, parent of China’s fourth-biggest carrier, planned to raise more than HK$10 billion in the first half of 2011, while Hong Kong Airlines, controlled by Hainan Airlines (900945.SS: ), was picking underwriters for a planned HK$5 billion IPO in the third quarter of 2011, the report quoted Hong Kong Airlines President Yang Jianhong as saying.

Yang said the application for Hong Kong Airlines to list as a so-called “red chip,” or overseas registered Chinese company, had been approved by the State Council.

Grand China, which called off a share sale plan two years ago because of the global economic crisis, is also the parent of China Xinhua Airlines, Shanxi Airlines and Changan Airlines.

Hong Kong Airlines, operating 18 aircraft, runs more than 30 routes, including to Beijing, Shanghai, Denpasar, Tokyo and Moscow. It planned to use its IPO proceeds to fund aircraft acquisitions — having ordered 33 widebody Airbus aircraft for more than $6 billion, Yang said.

(Reporting by Daisy Ku; Editing by Chris Lewis)

Two airlines target $2 billion in HK IPOs: report