T’way Air plans IPO to fund new longer-range routesT’way Air, the Korean low-cost carrier, will push to launch diverse longer-range service routes by maximizing funds from its planned listing next month, its chief said Tuesday.
The carrier will carry out an initial public offering on the country’s main Kospi bourse in August. Some 16 million shares are to be offered next week to raise a maximum of 267.2 billion won ($237.2 million).
“With a goal to launch mid and long-distance routes, we are scheduled to add more than 10 Boeing 737-MAX jets by 2021,” T’way CEO Chung Hong-geun told reporters.
“As the aircraft will allow us to fly longer distances, we will expand our boundary further to such countries as Malaysia, Singapore and those in Central Asia,” he added. Currently, the company operates 47 regular lines in nine countries, including Japan, China and Russia.
Established in 2010, T’way is based at Daegu International Airport, located in the southwestern part of the country.
The airline’s profits have also surged. Last year, it reported 584 billion won in sales, up 53 percent, and 47.1 billion won in operating profits that spiked 270 percent.
“Based on the successful market debut, we will achieve our vision of achieving 2 trillion won in sales and having 50 jets by 2025,” the chief stressed.