[HONG KONG] Aircraft leasing company BOC Aviation Pte Ltd plans to launch its Hong Kong initial public offering on Monday, aiming to raise about US$1.1 billion with a rare fixed-price listing, IFR said, citing people close to the deal.
Singapore-based BOC Aviation, an arm of Bank of China Ltd, will likely sell shares at a fixed price equivalent to 1.1 times its 2016 price-to-book value, Thomson Reuters publication IFR reported on Wednesday.
A fixed-price flotation is unusual, with most IPOs setting an indicative range before deciding on the final pricing, depending on demand.
The company will also count on cornerstone investors to buy about 50 percent of the shares on offer, IFR said.
BOC Aviation declined to comment on the IPO plans.
The company plans to sell new shares, raising funds to buy aircraft and for working capital, with a portion of the deal also coming from existing shares belonging to a unit of Bank of China, which is reducing its stake, according to the IPO prospectus.
The IPO is slated to be priced on May 24, IFR said.