Air China plans to raise up to RMB 15 billion ($2.2 billion) through a private offering on the Shanghai Stock Exchange to expand its fleet and replenish working capital, reports the South China Morning Post.
The flagship carrier is aiming to sell 4.36 billion new shares, or 30% of its existing capital, to 35 designated investors, according to a stock exchange filing on Tuesday. They include controlling shareholder China National Aviation Holding, which is expected to buy RMB 5.5 billion worth of the shares.
The carrier said RMB 10.8 billion of the proceeds would be used to buy 22 planes, including nine ARJ21 regional jets, four A320neo and nine A350 passenger planes from Airbus. The remaining RMB 4.2 billion would be used to replenish its working capital.