SIA laughs to the bank
 

From the Tiger Airways Prospectus:

Substantial Shareholders and their Associates:

Singapore Airlines
Number of Shares Acquired 179,009,250
Total Consideration (S$) S$11,933,950
Effective Cash Cost per Share (S$) S$0.0667


Indigo
Number of Shares Acquired 87,678,000
Total Consideration (S$) S$5,845,200
Effective Cash Cost per Share (S$) S$0.0667


Ryanasia
Number of Shares Acquired 58,452,000
Total Consideration (S$) S$3,896,800
Effective Cash Cost per Share (S$) S$0.0667


Dahlia (Temasek Holdings)
Number of Shares Acquired 40,185,750
Total Consideration (S$) S$2,679,050
Effective Cash Cost per Share (S$) S$0.0667



Investors in the Offering
Number of Shares Acquired ●165,155,000
Total Consideration (S$) ●S$272,505,750
Effective Cash Cost per Share (S$) ●S$1.65

So SIA makes = 179 million * (1.5 – 0.0667) = SGD 256 million from this exercise.

Perhaps SIA will have the last laugh! They might even be able to declare a FY profit!

Guess these would be the same investors that bought VB @ $2.25 then?

Interesting, time will tell all......
SN

Zig Zag I would imagine they are, same investors that bought Telstra shares at the super inflated price.

or they might end up like Ryanair and Westjet shareholders who made a fortune.

Edit, found

Tiger raises S$247.7 million in IPO.

Shares priced at S$1.50, heavily oversubscribed. Total market value of S$781.3 when it is listed on Friday.

"We are absolutely delighted with the response to this IPO from both the retail investors in Singapore and major global instutional investors." Tony Davis CEO

In fairness, remember this is on the Singapore Stock Exchange not Australia. Personally I think investors (wrongly) think that Tiger will become another Ryanair.

I remember Australia's first LCC Compass. They were oversubscribed too. Guess what they went bankrupt.

You'd think people would learn. Those same Compass investors bought more stock (after losing everything in Compass) in Compass' second go largely known as Compass II. Guess what? They lost everything second time around too.

Tiger is incredibly arrogant and would probably put up with Australian losses just to save face. I have said it before and I will say it again Tiger belongs with just a Singapore base. Australia will just be a money pit for Tiger

1a you must have been sound asleep when Compass 1 was around.

It was not shut down by 'bankruptcy'. It was shut down by the Hawke Federal Government for alleged non/under-payment of disputed airways fees, just before the peak travel peiod of Christmas (when the airline would have made millions). The subsequent complex court case ragarding those fees wasn't resolved for years and the matter certainly wasn't decisive enough to warrant the Government shutting down the airline.

The real reason Compass was targeted was that it was hurting Ansett (owned by the PM's mate); a basket-case airline which in any case eventually succumbed to the inevitable.

So holding our heads high in Australia and suggesting we are the epitome of free-market trade and fairness is naieve in the extreme.

This more amazed me than anything. It seems they have more interest in the Aussie domestic market than Singapore, even considering one is highly profitable and one is loss making, although only smaller amounts now.
Australia Domestic: 21 times over-subscribed
Singapore: 4 times over-subscribed.

What's that joke again about how you get a small fortune???

1a
The bigest problem Compass had was the lack of bums on seats. Tiger does not have that problem. If they go broke it will be due to poor economics and start up planning. In my opinion its been way too slow to add capacity, but then again i'm no manager.....
SN

Sunstar 320
The Domestic tranche (21 times oversubscribed) is not refering to the Australian Domestic airline part of the operation.

Sunstar: Tiger Airways (which operates both Singaporean and Australian bases) is a Singapore-incorporated company which is listing on the Singapore Exchange (SGX). It is not listing on the ASX.

The Singapore retail offering of the share was 21-times oversubscribed.

The international and institutional investor placements were 4-times oversubscribed.

It does seem that there was far greater interest in this IPO than the media would have thought - and that the underwriters probably did a crap job. They could have raised double the amount easily, looking at the response!

Dr Pepz
I agree, seems they are of great interest to investors. I would like to know who the corporate buyers are, maybe they know something we dont, in fact i'm sure they do!!!!!

Sure they could have raised a lot more with this float in hind sight but now that they have tested the water there is no stopping them having another issue. Still a lot of doubters out there including me but we may be suprised, to be honest I think it would be a good thing for the travelling public if they get profitable. I just wonder if there are enough pilots to satisfy everything thats going on over the next year or so and hopefully this year of expansions is not followed by a huge bust in the Aussie economy.
SN

I'd say crewing will be there biggest problem considering the anticipated competition for pilots this year.

It's all well and good to bring forward deliveries as they have, but they'll be parked for a while if they can't crew them. Expansion will come to a grinding halt.

Besides, why would you go to Tiger when you could just as easily go to Jetstar on better terms and conditions?

On a side, i note with interest that the QF propaganda machine has gone very quiet re TT.

Good luck to Tiger!!
If the crewing shortages you mention eventuate, there are still quite a few drivers overseas who have itchy feet to come home.
b.

Pay claim is in progress at the moment. IF the AFAP can get most of it through it could be attractive to quite a few people.

Yep, and if they insist on offering guys with a few years 320 experience and 10+ years jet command a 70% pay cut ( from their current job ) to be an effo for a year or 2, they will continue to have that problem :eek:

Stuff like no overnights, start/end in home base, chance to move base etc. The Adelaide roster is quite attractive too, the schedules only operate between 7am-9pm. Not a huge difference when comparing salaries either. But their has been small pay reductions in Singapore.