Taiwan's China Airlines (CI, Taipei Taoyuan) will debut stock in its low-cost subsidiary Tigerair Taiwan (IT, Taipei Taoyuan) on the Taipei Exchange’s Emerging Stock Board on December 16, at TWD41 new dollars (USD1.35) per share. It will be the first budget carrier to be listed on the bourse, spokesman Bernard Hsu said at a press conference on December 11.

The emerging board is a preparatory stock market for Taiwan’s two main bourses and is not open to public subscription. The plan is to move the shares to the Taiwan Stock Exchange during an IPO in the fourth quarter of 2020, Hsu told the Taipei Times.

This timeline tallies with a stock market filing issued by China Airlines in July, which said that Tigerair Taiwan would file a formal Initial Public Offering (IPO) application during the second quarter of next year for a listing during the final quarter.

In September, China Airlines sold 45 million shares in the LCC to its own stockholders and now holds a stake of less than 70%, down from 90% in July. This is in line with local listing rules stating that a parent must hold less than 70% of the stock of a subsidiary it aims to take public.

The money generated from the IPO will fund re-fleeting plans. Tigerair Taiwan aims to add fifteen new A320-200neo to its fleet between 2021 and 2027, with the first three arriving in 2021. The ch-aviation fleets module shows that it currently operates eleven A320ceo, just one of which is owned. The incoming neo jets will replace the eleven ceo, Hsu said.

“Most of our passengers are young people who love backpacking and exploring new destinations, so we must satisfy their needs,” he explained, adding that young customers expect a young fleet.

The neo will give fresh momentum to the carrier, he said, allowing it to launch new routes and meet increasing market demand. New destinations may include Da Nang and Nha Trang Cam Ranh in Vietnam, Angeles City Clark International in the Philippines, and Aomori and Akita in Japan. A new route to Seoul Incheon begins in January, adding to three already in operation to Korea, to Busan, Daegu, and Jeju. In total, Tigerair Taiwan currently connects 26 airports in Asia, according to the ch-aviation capacities module.