The best regulated crypto exchange
Find out why?

Lion Air postpones plans for $500m IPO

By Charlotte Ricca

The carrier has been trying to win over investors since its fatal air crash in 2018

Indonesia’s Lion Air has postponed plans for an initial public offering (IPO) as global stocks head for their worst week since the 2008 financial crisis.

The IPO, which could raise up to $500m (£385m), was expected to launch in March. However, according to a Reuters report, Lion Air will only consider a float once the markets have stabilised.

Global share prices plummeted this week as the rapid spread of the coronavirus raised fears of a global pandemic. A number of Asian stock indexes are in correction territory, while in the US the Dow Jones saw its sharpest drop in history, falling nearly 1,200 points.

Airlines have also been suffering, with a massive decline in passenger numbers.

Lion Air, which is part of the Lion Air Group, has been planning to go public since 2014. It has delayed proceedings a number of times and the latest IPO suffered a setback following the fatal crash of one of its Boeing 737 MAX jets in 2018.

It has been trying to win over investors since the accident and launched a pre-marketing drive for a public float in January.

BNP Paribas and Morgan Stanley are the international banks leading the deal. Both declined to comment. However, Reuters reported that the spread of the coronavirus has put key meetings and roadshows on hold.

The carrier plans to use the money to fund longer-term leases, which is similar to owning planes. It has large outstanding orders for new jets from both Boeing and Airbus.

Lion Air is one of Asia’s largest budget airlines, with 112 planes. It has joint ventures in Malaysia and Thailand, aircraft maintenance facilities and a freight business.

FURTHER READING: Coronavirus: how airline stocks have reacted and what might happen next

FURTHER READING: First post-Brexit IPO a success

Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a Currency.com contributor.
Subscribe to Currency.com news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image