HK Express (UO, Hong Kong International) chief executive Andrew Cowen has denied reports circulating in the Chinese press that the Hong Kong-based LCC is pursuing an IPO.
Last month, the Hong Kong Economic Times quoted company sources as saying parent firm HNA Group, through its Hainan Airlines (HU, Haikou) unit, had been in contact with several investment banks over a planned listing on the Hong Kong bourse. They claimed the budget carrier was looking to raise between USD300-400 million for fleet and capital expenditure.
However, in a response to a query from Hong Kong's marketwatch news, Cowen said no such plans were on the cards as yet. He added that any motion towards an IPO would also depend on the airline's shareholders.
As previously highlighted, the airline must also satisfy the HKSE's requirement that entities seeking to go public must have been profitable for over three years or have at least HKD500 million (USD64 million) in trailing full year audited revenue plus a minimum market cap at the time of offering.
Formerly Hong Kong Express (Hong Kong International), HK Express only registered its first full year profit in FY2015, eight years after its launch and two years after its transition into a budget airline. Mid-year predictions issued last year showed the LCC expects FY2016 to be what it termed, another "highly profitable year".
