India's Jet Airways IPO sells out fast

0 Comments | AFP, February, 2005

BOMBAY (AFP) — Shares of India's biggest private airline, Jet Airways, were snapped up within minutes at the launch of its initial public offering (IPO) as an upbeat sentiment prevailed over the country's aviation sector.

Jet Airways, founded by London-based ex-travel agent Naresh Goyal, was selling 20 percent of its equity or 17.2 million shares to retail and institutional investors in a bid to raise up to 443 million dollars.

The funds would be used to buy new aircraft and retire debt. By late afternoon, the issue was subscribed 2.5 times.

Jet, which controls 45 percent of the domestic aviation market, aims to raise between 16.4 to 19.4 billion rupees (374 to 443 million dollars) through its share offering which was priced between 950-1,125 rupee a share....