IPO RULES: CAL is to sell 45 million shares to cut its holding to 67.5 percent to abide by a TWSE limit on a parent’s stake in a publicly owned subsidiary, a spokesman said

Taipei Times
Date: Jul 05, 2019
By: Kao Shih-ching  /  Staff reporter

China Airlines Ltd (CAL, 中華航空) is to sell NT$1.84 billion (US$59.2 million) of Tigerair Taiwan Ltd (台灣虎航) shares ahead of the low-cost carrier’s (LCC) initial public offering (IPO) in the fourth quarter.

CAL holds 180 million shares, or a 90 percent stake, of Tigerair, higher than the Taiwan Stock Exchange’s (TWSE) limit of 70 percent stake that a parent company could have in a publicly owned subsidiary.

CAL this month is to sell 45 million shares to its own shareholders at NT$41 per share, cutting its holding of Tigerair to 67.5 percent, CAL spokesman Jason Liu (劉朝洋) told the Taipei Times by telephone.

The price is much higher than CAL’s share price of NT$9.79 in Taipei trading yesterday, as Tigerair’s profits have grown steadily since 2017, Liu said, adding that the subsidiary would reveal its net value this month.    [FULL  STORY]