Tiger Airways aims to raise $297m

Singapore budget carrier Tiger Airways aims to raise close to $300 million to fund future expansion plans.

In an announcement to the Singapore Exchange early Tuesday, the airline said it plans to offer new shares to existing stakeholders at 47 cents each.

This is a 34 per cent discount from the last traded price on March 4.

The airline will also issue what is called convertible securities which can be converted to normal shares in the future.

Every four ordinary shares will entitle a stakeholder to one convertible security which will cost $1.07.

In return, Tiger will pay shareholders 2 per cent of this amount a year for the first five years.

Group chief executive Koay Peng Yen said: "The Tiger Group has nearly doubled its capacity in the past four years, and is now flying about 6.5 million passengers annually."

"The proceeds from the fund-raising exercise will allow us to fortify our balance sheet and be well-positioned to grow the Tiger franchise in Asia."

The group has two wholly-owned carriers in Singapore and Australia and joint ventures in Indonesia and the Philippines.

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