NewGen Airways, a China-focused charter operator, plans an initial public offering (IPO) to raise 8 billion baht to finance its ambitious growth plan.
The majority Thai-owned airline, which has until recently maintained a low profile, aims to use the proceeds mainly to establish its own facility for training pilots, flight crew and aircraft technicians.
Jarurnpong: Robust financial performance
NewGen aims to get its IPO off the ground in the last quarter of next year or no later than 2017. It is consulting Ernst & Young and Bualuang Securities for its listing.
Tentatively, the IPO will be priced at 2 baht per share with 10 satang par value.
NewGen would be the first airline debut on the Stock Exchange of Thailand (SET) since November 2014 when Bangkok Airways started trading below the launch price of 25 baht.
NewGen chief executive Jarurnpong Sornprasit said the airline had a robust financial performance in its first two years to qualify for the listing.
It will be able to match the main SET requirement to achieve revenue exceeding 5 billion baht or be able profitable for three consecutive years.
Mr Jarurnpong told the Bangkok Post that the airline's revenue this year will "definitely" surpass 5 billion baht, up from 2.7 billion last year. Next year's revenue is estimated at 8-10 billion baht.
The airline is on course to make a net profit of 400 million baht this year, up from 221 million last year.
"It is not too soon to launch an IPO because we have grown so fast and the outlook for continued healthy performance is good," he said.
NewGen has carried just over 1 million passengers, mainly Chinese tourists to Thailand, in its two-year life.
This year alone, it aims to transport 1.2 million passengers, raising the number to 2 million next year and 3 million in 2018.
The airline is taking delivery of its eighth and ninth single-aisle B737-800 aircraft in August and October to meet fast-growing traffic demand in its expanding network.
It plans to add four B737-800s to its fleet annually over the next few years.
Mr Jarurnpong said the airline's training facility would be located near Bangkok's Don Mueang airport and will be equipped with a full flight simulator for Boeing's new-generation family jet. It will start operating in 2018.