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Japan Airlines plans to raise $8.4 billion via IPO

31 Aug 2012 Evaluate

Japan Airlines (JAL), through its initial public offering (IPO) is planning to raise up to $8.4 billion, after fixing the indicative price range, by making it the world's second-largest IPO this year after Facebook Inc. The airline, which is planning to relist its shares on the Tokyo Stock Exchange on September 19, is likely to fix the price between 3,500 yen and 3,790 yen after sounding out investors in a one-week book-building process, which starts tomorrow.

Further, 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% of JAL after injecting 350 billion yen worth of taxpayer funds in 2010 to keep the airline operating while it restructured.

This move by the company is to highlight its strong recovery less than three years after it stumbled into bankruptcy with $25 billion in debt.

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