Japan Airlines (JAL) is planning on relisting its shares in an IPO on the Tokyo Stock Exchange. By September, JAL shareholders intend to sell between ¥500 billion and ¥1 trillion (US$6.4b - US$12.8b, €5b - €10b).
If the sale goes into high-end estimates, it will make JAL the largest airline in the world by market value. It will also be the largest IPO in Japan since the 2010 listing of Dai-Ichi Life. However, Senri Sasahara, chief executive officer of Innovative Advisor Corp, said “The amount sought may be a bit too ambitious.”
JAL entered bankruptcy protection in January 2010 and was later given a government bailout. When it was delisted from TSE, it cut one-third of its workers, and reduced the benefits of remaining employees. JAL emerged from bankruptcy in March 2011. Since then, it has posted a record ¥188.4 billion (US$2.4b, €1.9b) in profit for fiscal year 2010.
JAL faces growing competition from discount airlines, such as AirAsia Japan and Peach. In response, JAL entered into a joint venture to form a low-cost carrier with JetStar Airways.
Related articles
- "Japan Airlines to file for bankruptcy" — Wikinews, January 18, 2010
Sources
- Japan Airlines plans to relist shares in Tokyo — BBC News Online, January 6, 2012
- Chris Cooper. JAL Plans $13B IPO as Budget Carriers Loom — Bloomberg, January 5, 2012
Source & Attribution
Originally published by Wikinews on January 7, 2012. Original author: Wikinews.
CC BY 2.5. Photograph: A Japan Airlines Boeing 777-200 departing Kansai International Airport.
Image: BriYYZ. Photo: BriYYZ from Toronto, Canada JAL Boeing 777-200 JA8985 Source file. CC BY-SA 2.0. CC BY-SA 2.0.
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