China Southern plans to raise US$1.57 billion
China Southern Airlines plans to raise up to CNY10.75 billion (US$1.57 billion) in a private offering to repay bank loans and boosts its working capital. According to reports, the company will issue up to CNY1.77 billion ‘A’ shares at a minimum price of CNY5.66 each to 10 institutions, including its parent company, China Southern Air Holding Co. The announcement was made in a statement to the Shanghai Stock Exchange. Guangzhou-based China Southern will also issue up to 312.5 million ‘H’ shares at a minimum of HK$2.73 (US$0.35) to Nan Lung Holding Ltd, a subsidiary of its parent company. China Southern Airlines was reported saying that it would use the proceeds from the share sale to repay bank loans totalling CNY4.8 billion and US$1.35 billion.
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