Tiger Airways to raise $168m in IPO

Tiger Airways Holdings, the budget carrier part-owned by Singapore Airlines, will raise S$233 million (Dh616m, $168m) in Asia's first initial public offering by an airline in five years.

Chief Executive Officer Tony Davis plans to use the money to pay for new planes to challenge rivals, including AirAsia Bhd and Australia's Jetstar Airways.

Budget carriers are expanding in Asia as economic growth boosts demand for business and leisure travel in the region.

The airline, with operations in Singapore and Australia, is selling 155.6 million new shares.

Indigo Partners, Tiger Air's second-biggest shareholder, is also selling 9.6 million existing shares, according to a company filing last week.

Singapore Air will control 33.1 per cent of the budget carrier after the IPO, while Temasek Holdings will have 7.4 per cent.

Indigo Partners' stake will fall to 14.5 per cent from 24 per cent.

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