SEOUL, Oct. 31 (Korea Bizwire) – Jin Air Co., the low-cost carrier unit of Hanjin KAL Corp., said Tuesday it will raise over 300 billion won (US$268 million) through its planned initial public offering in December for the expansion of its fleet and routes.
The nine-year-old budget carrier plans to place 9 million existing stocks and issue 3 million shares with a price range of 26,800 to 31,800 won per share to raise between 321.6 billion won and 381.6 billion won in funds, Jin Air said in a statement.
On Monday, the company obtained a preliminary approval for the planned IPO in early December on the main bourse.
Mirae Asset Daewoo is the lead manager of the IPO, the statement said.
Jin Air is a wholly owned unit of Hanjin KAL, a holding company which also has the national flag carrier Korean Air Lines Co. as a full-service carrier affiliate.
Jin Air posted a net profit of 33.5 billion won (US$30 million) on sales of 423.9 billion won in the first half of this year. The net figure more than doubled from 15.1 billion won a year ago, with sales jumping 30 percent from 325.4 billion won.
In 2018, Jin Air aims to achieve sales of 1 trillion won by increasing the number of routes from the existing 36 to more than 50, it said.
The carrier now operates 24 passenger jets, four B777-200ER jets and 20 B737-800s, on four domestic and 32 international routes including those to Hawaii, Guam and numerous Asian cities.