Philippine budget airline Cebu Air Inc. is set to raise up to $618 million in the country's largest-ever initial public offering, plugging into a robust stock market that has been boosted by a surge of foreign money.
The company, whose fleet operates under the name Cebu Pacific, said its IPO shares will be sold at 125 pesos ($2.88) each. The share sale will launch on October 12 and end on Oct. 19. Listing on the local stock exchange is slated for Oct. 26.
The IPO comes amid a stock market rally that has sent the main index to record highs almost daily since last month, driven by foreign money seeking better returns than available in developed nations still hobbled by last year's recession. The Philippine Stock Exchange Index is up 39 percent since the start of the year, ranking among the top performing indexes in Asia.
The airline has recently gotten attention for flight attendants who dance to music by Lady Gaga to keep passengers from snoozing through in-flight safety demonstration.
A video of attendants performing a choreographed routine aboard a Cebu Pacific flight last week to demonstrate safety procedures has received more than 8 million hits on YouTube after being posted on the popular video sharing website.
A total of 214.63 million shares will be offered for sale, including 27.99 million overallotment option shares.
The proceeds will be used for the company's expansion, which includes buying 22 Airbus A320 aircraft over the next four and a half years.
Cebu Pacific flew more passengers than the country's flag carrier, Philippine Airlines, in the first half of the year. It flies to 33 domestic and 16 international destinations.
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