Bank of China Ltd. (03988.HK, 701988.CN), the country’s fourth biggest commercial bank, will spin off its aviation leasing unit in an initial public offering in Hong Kong.
BOC Aviation Pte. Ltd. will raise funds by selling no more than 40 percent of the firm through a listing of new and old shares on the main board of the Hong Kong Stock Exchange, Reuters reported, citing the lender’s statement to the Shanghai Stock Exchange.
The plan was approved unanimously by the bank’s board of directors on Friday.
The bank will sell 90 percent of the offer to international investors and 10 percent locally. The bank will remain the controlling shareholder of the leasing firm.
The fund raised will be used for purchasing new aircraft and supplement working capital.
The statement did not mention the timing of the share issue or the amount to be raised.
BOC Aviation is one of the world’s biggest aviation leasing operators. It owned 236 aircraft and managed 20 other aircraft by the end of June, according to the bank’s interim report.
Last year the unit held total assets of US$11.4 billion and net assets of US$2.1 billion, and recorded a profit after tax of US$309 million in 2014.
– Contact us at [email protected]