No.230

JuneYao Airlines completed private placement
ReleaseDate: 2016-07-01

 On May 12, JuneYao Airlines published report on private placement of shares. The report revealed that ths times private placement issued a total of 148 million shares, the offer price was RMB 22.82 yuan/share, total amount being raised was RMB 3.368 billion yuan. After this time’s issuance, the company’s total equity will grow from 1.136 billion shares before issuance to 1.284 billion shares.

 

According to the report, this times issuance adopted investor price competition to determine offer price. A total of 8 investors submitted application quotation list, in which 4 investors paid application deposit, Essence Fund Management Co., Ltd, Bosera Fund Management Co., Ltd, Caitong Fund Management Co., Ltd, and Lion Fund Management Co., Ltd are not required to pay application deposit, the applications of 8 investors were all valid applications.

This time’s private placement marks the first time successful financing after JuneYao Airlines was listed. After financing, JuneYao Airlines’ capacity expansion is expected to pick up speed, its fleet size will grow quickly to serve the market.

According to the report, this time’s funds being raised will mainly be used to purchase aircrafts and engines, and flight simulators, the remaining funds will be used in “Taoluxing” project and pay off bank loans. Through the fund raising, it can effectively improve the company’s transport capacity, expand business scale, further consolidate guarantee for safe operation, enable the company’s capacity supply to meet the growing needs of air travel, so as to fully enjoy the industry’s prosperity. Meanwhile, it can expand the company’s overall service ability in flight ticket peripherals and tourism product fields, build “flight+X” service platform by combining flight and tourism, expand tourism market to boost newly added customer sources. After this time’s funds are put into place, it will supply working capital needed by the company’s development, expand fleet size, enter flight tourism industry, and facilitate the company’s long-term development.

On May 11, JuneYao Airlines published operation data of April 2016. Passenger turnover rose by 23.98% on Y-o-Y basis. Wherein, domestic flight routes increased by 27.9% on Y-o-Y basis, international flights rose by 12.77% on Y-o-Y basis. Available seat kilometers rose by 25.56% on Y-o-Y basis, in which domestic flight routes rose by 31.46% on Y-o-Y basis, international flight routes rose by 9.25% on Y-o-Y basis. Average seat occupancy rate is 87%, down by 1.11 percentage points compared to that of the same period last year. Overall speaking, in the first 4 months of this year, the company’s supply and demand relation is well matched, seat occupancy rate grew slightly by 0.1 percentage points on Y-o-Y basis to 86.63%, both domestic and overseas flight routes showed little change. Additionally, the 2nd quarter is a traditional off season for the whole industry, in 3rd and 4th quarters will experience holidays and Disney opening effect, it is expected the demand in Q3 and Q4 will maintain steady upward trend.