TIGER Airways is looking to generate between US$100 million to US$150 million through a rights issue, which will be underwritten by its two majority shareholders Temasek Holdings and Singapore Airlines (SIA).
The move comes shortly after Tiger Airways resumed domestic operations in Australia, following a six-week suspension by the country’s Civil Aviation Safety Authority (TTG Asia e-Daily, August 10).
Although Tiger Airways has not yet confirmed how the capital will be utilized, the extra funds will come as a welcome relief considering its first-quarter loss of US$17 million, and the financial impact of the grounding on yet-to-be-announced second quarter results (TTG Asia e-Daily, August 5).
SIA and Tiger Airways requested for trading in their shares to be halted earlier in the day, pending the announcement of the rights issue.
