Hainan Airlines has revealed its revised plan for private placement, according to Securities Daily.
 
Under the revised plan, the new non-public offering will consist of no more than 1.91 billion shares and will be priced at no less than 4.19 yuan (US$0.66) per share. The offering will raise around 8 billion yuan (US$1.27 billion) for the airlines.
 
Out of these funds, 6.1 billion yuan (US$964.23 million) will be used to repay bank loans which are due in 2012, while the rest will be used in operations, said the Securities Daily.
 
Cai Jianming, an analyst with China Investment Securities, told the newspaper that Hainan Airlines has not changed its aggressive approach to expansion via acquisitions, judging from its debt-to-assets ratio from 2008 to 2011. However, Cai said Hainan is likely to alter its pace of growth.
 
The airline initially announced its private-placement plan last July, but delayed the plan as stock prices affected its issuance price. Its stock price declined by 4% to close at 4.62 yuan (US$0.73) on Jan. 30.
 
According to the Securities Daily, Hainan has already issued additional shares twice and raised funds of 8.6 billion yuan (US$1.36 billion).
 
If the third additional share offering is completed, Hainan will raise a total of 16.6 billion yuan (US$2.63 billion), more than its net assets of 14 billion yuan (US$2.22 billion). Cai Jianming said airline is financially healthy and is raising funds to ensure uninterrupted expansion.
 
Citing information released by the airline, the newspaper said it has acquired four publicly traded companies since 2003, and its business now includes commerce, foodstuffs, logistics, tourism and airport operations.
 
 
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