Air China (CA, Beijing Capital) is the latest Chinese carrier to pursue funding through the private issuance of shares. In a filing to the Shanghai Stock Exchange, the Chinese national airline said it aims to raise up to CNY12 billion (USD1.931 billion) through the private placement of 994,200,497 new A-shares with not more than 10 Investors (including the China National Aviation Holding Company (CNAHC)).
The carrier will use CNY7.45 billion (USD1.199 billion) in the purchase of fifteen B787-9 jets already ordered from Boeing (BOE, Washington National). Seven of the jets will arrive next year followed by six in 2017 and two in 2018 it said.
Of the remainder, CNY800 million (USD128.8 million) will be used to upgrade its e-commerce direct sale platform, CNY150 million (USD24.15 million) will be used in the roll out of on-board Wifi services, and CNY3.6 billion (USD579.6 million) will be used to shore up working capital reserves and pay off short-term debts.
