The airline, which is scheduled to relist its shares on the Tokyo Stock Exchange on September 19, said the price would be set between 3,500 yen and 3,790 yen after sounding out investors during a one-week book-building process that starts on Friday.
The top end of the range is equal to the preliminary reference price of 3,790 yen disclosed when Japan Airlines officially announced on August 3 that it would relist its stock, a move that underscores its strong recovery less than three years after it tumbled into bankruptcy with $25 billion in debt.
The listing will allow a state-backed fund to exit its investment in the former national flag carrier with a tidy profit. The fund, the Enterprise Turnaround Initiative Corporation of Japan (ETIC), owns 96.5 percent of JAL after injecting 350 billion yen worth of taxpayer funds in 2010 to keep the airline operating while it restructured.
For the business year ended in March, JAL booked a 205 billion yen operating profit, placing it at the top of the notoriously volatile industry. JAL is forecasting profit will drop to 150 billion yen in the current year.
The strong rebound in profitability followed a massive restructuring that eliminated a third of its workforce, scrapped unprofitable routes, slashed pensions and retired ageing and fuel-guzzling jumbo jets.
The airline also benefits from a lower interest burden stemming from debt waivers, smaller depreciation costs following a write-down of its fleet, and a $4.5 billion tax credit that it can use to offset corporate tax for the remainder of the decade.
Those favorable provisions have sparked criticism from domestic rival All Nippon Airways (9202.T), which has been lobbying for measures such as preferential allocation of landing slots to level what it claims is an unfair playing field.
At the top end of the range, JAL would trade at a price-to-earnings ratio of 5.3, based on its profit forecast for the current business year. That is cheaper than the industry average of nearly 16, according to Thomson Reuters data.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Related Post:
ipo market. stock
- Silver Spring Networks ipo shares prices opened at $22
- Pfizer animal health Zoetis Ipo shares prices
- healthcare realty trust ipo common stock prices
- GlobeImmune ipo stock price
- Astro Malaysia Holding ipo stock price range
- Trulia ipo stock price range and symbol
- Japan Airlines IPO Stock release date september 19 2012
- Debut Far East Hospitality Trust 8/27/2012
- Far east hospitality trust ipo stock prices
- Hi-Crush Partner ipo stock prices range
- Manchester United IPO stock predictions
- Bloomin' Brands ipo stock price range
- manchester united ipo prospectus
- Globus Medical IPO Stock price range per share
- Manchester United IPO stock Prices
- five below inc ipo shares prices and stock symbol
- Kayak ipo shares price and stock symbol
- Palo Alto Networks ipo stock symbol and shares prices
- Fender ipo stock symbol and shares prices
- Formula One IPO prospectus Singapore next week
- Speciality Restaurants IPO shares prices, prospectus
- Lantronix IPO file prospectus, shares prices
- LINC Logistics IPO shares prices, stock symbol
- Edgen IPO shares prices, stock symbol
japan
- Nikkei share ehead Bank of Japan policy meeting
- Japan Stock Nikkei closed september 21 20012
- BOJ asset buying programme monetary policy september 19 2012
- Tokyo stocks Nikkei down 8/30/2012
- japanese stock Nikkei Index outlook week august 27-31 2012
- Nikkei index outlook week august 20-24 2012
- Minutes of BOJ monetary policy meeting 8/13/2012
- Tokyo stocks Nikkei up july 19 2012
- Tokyo Stock Nikkei Futures for July 16-20 2012
- Tokyo shares market Nikkei outlook july 9-13 2012
- Japan Nikkei outlook june 25 2012
- Tokyo stocks Nikkei open up june 13 2012
- Japanese stock futures rose june 11 2012
- Tokyo stocks Nikkei open june 5 2012
- Tokyo Stock Exchange opened down june 1 2012
- Japan Stock Nikkei open higher may 28 2012
- Japanese stock futures rose may 24 2012
- Tokyo Stock Nikkei 225 closed may 2 2012
- Japanese stock market opened high april 25 2012
- Japanese government bond prices april 23 2012
- Japan stock Nikkei down april 23 2012
- BOJ to extend bond buying maturities
- BOJ policy meeting market focus today april 23 2012
- Tokyo Stock nikkei futures rose april 18 2012
No comments:
Post a Comment