Jeju Air (7C, Jeju) intends to raise KRW170 billion won (USD138 million) by selling stocks as part of self-help measures to survive the coronavirus crisis, it revealed in a stock exchange disclosure on May 21.

A share sale was one of the options South Korea's biggest low-cost carrier previously suggested it might deploy to raise needed operating capital.

Shareholders will now be given the option to buy stocks to be sold in July at KRW14,000 (USD11.36) per share. The new shares will be listed on August 4. The company's share price closed on the Seoul exchange on May 21 at KRW19,600 (USD15.90), Yonhap News Agency reported.

"The company is also considering selling aircraft engines purchased for replacement and leasing them back to secure operating capital," a company spokesman told the news agency.

As previously reported, on April 28, Jeju Air opted to delay the closing date to acquire a 51.17% stake in fellow budget carrier Eastar Jet (ZE, Seoul Gimpo) for KRW54.4 billion (USD45 million), because of delays in obtaining regulatory approvals from Vietnam and Thailand.

Once these two countries provide their approval, state-owned lenders Korea Development Bank and Korea Export-Import Bank promised to inject KRW170 billion (USD138 million) into Jeju Air, the same amount the LCC now intends to raise in the stock offering.

Jeju Air swung to a quarterly net loss of KRW101.4 billion (USD82 million) for the January-March period, from a net profit of KRW42.1 billion (USD34 million) a year ago.