BOC Aviation IPO Backed by China Investment Corp, Boeing
16 Mai 2016 - 7:28AM
Dow Jones News
By Alec Macfarlane
HONG KONG--Aircraft lessor BOC Aviation Ltd. has launched its
initial public offering with cornerstone backing from investors
that include China Investment Corp. and Boeing Co. (BA).
The Singapore-based company, which is majority controlled by
Bank of China Ltd. (3988.HK), kicked off its IPO roadshow Monday
and has attracted US$583 million from 11 cornerstone investors,
according to a term sheet seen by The Wall Street Journal.
The biggest pledge is from Chinese sovereign-wealth fund CIC,
which has committed US$100 million to the offering.
Other investors include U.S. plane-maker Boeing, Chinese
private-equity firm Hony Capital Ltd., China's Fosun Group,
Fullerton Funds Management -- a subsidiary of Singapore state
investment firm Temasek Holdings -- and Oman Investment Fund, the
Sultanate of Oman's sovereign wealth fund.
BOC said in a stock exchange announcement on May 12 it had set a
price of HK$42.00 (US$5.4) a share for the offering, which will
raise $1.1 billion. Proceeds from the IPO will be partly used to
fund the purchase of more aircraft, according to a company
spokesman.
BOC International Holdings and Goldman Sachs Group are handling
the offering.
BOC Aviation claims to be the biggest aircraft leasing company
in Asia, with $12.5 billion in assets, 270 aircraft and 62 airline
customers in 30 countries, including Cathay Pacific Airways and
Qantas Airways.
It also claims to have one of the youngest fleets in the sector
with an average age of 3.3 years, including models such as the
Airbus Group's A320neo.
Bankers regard BOC as one of the better-quality IPOs in Hong
Kong this year, buoyed by Asia's growing aviation sector. Passenger
demand is expected to nearly triple by 2035, according to Airbus.
The company made US$343m in net profit in 2015, an 11% increase
from 2014.
Bank of China will retain a controlling stake in the company
following the IPO.
China Development Bank Leasing, BOC aviation's rival, is also
planning an IPO in Hong Kong expected to raise roughly US$1
billion, The Wall Street Journal previously reported.
Write to Alec Macfarlane at alec.macfarlane@wsj.com
(END) Dow Jones Newswires
May 16, 2016 01:13 ET (05:13 GMT)
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