IPO
www.postcourier.com.pg
Airlines PNG goes public
AIRLINES PNG (APNG) Limited is going public with the issue of 105 million shares to potential investors.
It was reported in National Superannuation Fund Ltd newsletter that the airline which operates local and international routes would list on the Port Moresby Stock Exchange on June 23.
The airline intends to use funds raised from the listing to purchase four aircraft, a Twin Otter, two Dash 8s and a Boeing 737, while some of it will be used to reduce debts and used as working capital.
“The owners of APNG are offering 50 per cent of the company, that 105 million shares, to potential investors and the public in Papua New Guinea,” the newsletter stated. The offer opened on April 30 and will close on June 6.
The application price for investing into APNG shares is K1.00 and each potential investor may apply for a minimum parcel of 2000 shares or a higher number of shares in multiples of 100.
According to the newsletter, thus, a minimum investment of K2000 was an equitable value for investing into an airline company that was competitive within PNG’s airline industry through expansion of its capacity, passenger numbers and routes serviced.
Most notably, National Super-annuation Fund, PNG’s growing superfund, is looking to acquire 10 per cent of the shares that are being offered to the public.
APNG was started in 1987 in Milne Bay Province. It went on to acquire a long term contract with Chevron Niugini in 1989 to provide aviation support to the Kutubu oilfields.
In 1997, the company purchased two Dash 8 aircraft which took the airline into the high capacity passenger market and laid the groundwork for the highly competitive and technically competent airline it is today.
Before 2005, it operated as a domestic carrier but soon after started international services to Cairns in 2005 and Brisbane in 2006.
By the end of this year, APNG will have 18 planes in their fleet, that is eight Twin Otters, nine Dash 8s and one Boeing 737.
And as of March this year, APNG has more than 70 pilots, men and women, to undertake the company’s flight operations and 131 engineering staff to look after the company’s fleet.
Pacific Nominees Limited has been appointed as advisers to the share issue, while Kina Securities Ltd has been appointed as the broker to the issue, PNG Registries Ltd as registrar, Deloitte Touch Tohmatsu as auditors, O’Brien’s as lawyers and Bank of South Pacific Ltd as the airline’s designated bank.