Hong Kong Airlines Ltd. is mulling a listing on the city’s stock exchange in what could be the first “dual tranche, dual counter” debut to raise funds in yuan and Hong Kong dollars, the Hong Kong Economic Journal reported Monday.
The Hong Kong-based carrier aims to raise about US$500 million from share sales this year, the report said, citing sources.
The two sets of shares will carry different stock codes and the deal will be arranged solely by JPMorgan Chase & Co.
Sister company Hong Kong Express Airways, a budget airline, will not be part of the scheme, the sources added.
Hong Kong Exchanges and Clearing Ltd. (00388.HK) has encouraged companies to tap into the city’s renminbi pool since 2011, by using the dual share sale approach.
A slew of yuan-denominated exchange-traded funds tracking physical A shares have been launched since then. Hopewell Highway Infrastructure Ltd. (00737.HK) became the first listed company to issue yuan-denominated shares and the first in the world to trade in both the yuan and Hong Kong dollars.
As of the end of May, Hong Kong’s yuan deposits amounted to 955.8 billion yuan (US$153.86 billion).
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