Tiger Airways launches IPO

Tiger Airways has launched an initial public offering of its ordinary shares, following the registration of its prospectus by the Monetary Authority of Singapore (MAS) today. Tiger Airways is the first Singapore-based low-cost airline to seek a listing on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST).

Tiger Airways currently operates from bases in three locations – Singapore’s Changi Airport Budget Terminal, Tullamarine Airport in Melbourne and Adelaide Airport in South Australia. The group started with an initial fleet of two aircraft, which has now grown to 17 Airbus A320-family aircraft, and is committed to increasing its fleet size to 68 by December 2015. Tiger Airways’ route portfolio covers a total of 33 airports across 11 countries and territories across the Asia Pacific region.

The Asia Pacific region is expected to be the largest air travel market globally by 2020 and air travel in this region is projected to grow at an average annual rate of 6.5% over the next 20 years.

President and Chief Executive Officer of Tiger Airways, Mr Tony Davis said, “The Offering is an important milestone for Tiger Airways. Our Singapore operations achieved profitability in its third full year of operations and have been reporting annual profits ever since ..... The under-developed low-fare, low-cost model in the majority of countries in the region presents opportunities for our future growth. We are now ready to embark on the next stage of growth, and believe that a listing will help fuel that growth.

We intend to apply our proven low-cost airline model to offer domestic and/or international air travel in other Asian markets through the creation of additional operating airlines. We also plan to increase frequency of flights on existing routes and expand operations by commencing new routes between the airports we now serve, as well as add new destinations from our existing bases in Singapore and Australia. Part of the IPO proceeds will be used to fund our planned acquisition of aircraft and to establish potential new airlines and/or operating bases, as and when plans are finalised.”

Based on the maximum offering price of Sin$1.65, Tiger Airways’ net proceeds from the Offering (as defined below) will be approximately Sin$246.8 million. Tiger Airways has said it intends to use its net proceeds from the Offering primarily for the following purposes:

• up to Sin$166 million to fund the equity portion of the group’s planned acquisition of Airbus A320 aircraft and the associated aircraft pre-delivery payments;

• up to Sin$10 million to establish potential new airlines and/or operating bases, as and when plans for a new airline and/or operating bases are formalised;

• approximately Sin$50.4 million to repay all outstanding short-term loans which have been used to finance the Group’s aircraft pre-delivery payments; and

• approximately Sin$20.4 million for working capital.

The Offering

Tiger Airways is issuing and making an offering of 155,556,000 Shares and one of its shareholders, Indigo Singapore Partners, L.P., is making an offering of 9,599,000 Shares, for subscription and/or purchase by investors at an offering price to be determined. A total of 165,155,000 Shares will be offered.

In connection with the Offering, one of Tiger Airways’ shareholders, Ryanasia Limited, has granted to the international underwriters an over-allotment option to purchase up to an aggregate of 19,819,000 Shares, at the offering price.

Citigroup Global Markets Singapore Pte. Ltd. is the Joint Global Coordinator, Joint Lead Manager, Joint Bookrunner, Joint Issue Manager and Joint Underwriter; Morgan Stanley & Co. International plc is the Joint Global Coordinator, Joint Lead Manager, Joint Bookrunner and Joint Underwriter; Morgan Stanley Asia (Singapore) Pte. is the Joint Issue Manager and Joint Underwriter; and DBS Bank Ltd. is the Joint Lead Manager, Coordinator of the Singapore Public Offer and Joint Underwriter, for the Group’s proposed listing on the SGX-ST.

The Singapore Public Offer is open for application from 5 p.m. on Wednesday, 13 January 2010 and will close at 8 a.m. on Monday, 18 January 2010. The Shares are expected to commence trading on the SGX-ST on a “ready” basis at 9 a.m. on Friday, 22 January 2010.

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