Support Skift’s Independent JournalismMake a Contribution Now
Air China Ltd., the country’s largest carrier by market value, plans to raise 12 billion yuan ($1.9 billion) from a private placement of new shares amid volatility in the domestic stock market.
The Beijing-based airline plans to sell as many as 994 million shares at no less than 12.07 yuan each, it said in a Shanghai exchange filing today. Air China shares have been halted since June 29 — when the stock closed at 15.36 yuan, its highest level since November 2010 — and will resume trading Wednesday. The carrier’s Hong Kong-listed shares also will resume trading Wednesday after closing June 29 at HK$8.76.
Air China is among at least four mainland carriers to announce plans to raise funds from A-share private placements just as the world-beating rally in the onshore Chinese stock markets started unwinding. The benchmark Shanghai Composite Index has dropped more than 14 percent during Air China’s suspension.
On Monday, state-owned rival China Eastern Airlines Corp. announced plans to raise 15 billion yuan through a private placement of shares. The Shanghai-based carrier also said it raised $450 million by selling a stake to Atlanta-based Delta Air Lines Inc, expanding a partnership that will allow the two airlines to better compete on routes across the Pacific.
Spring Airlines Co. said July 20 it plans to raise as much as 4.5 billion yuan in a placement with 10 unidentified investors, and Juneyao Airlines Co. said July 14 it plans to raise as much as 3.57 billion yuan. Low-cost carrier Spring listed in January, while Juneyao made its listing debut in May.
This article was written by Bloomberg News from Bloomberg and was legally licensed through the NewsCred publisher network.