Air China readies $953 million capital increase

Air China announced plans to raise more than $953 million through a share issue. It will issue up to 585 million new A shares to "10 specific investors" at CNY9.58 ($1.40) per share and 157 million new H shares to a subsidiary of parent company China National Aviation Holding priced at HK$6.62 per share ($0.85). The state-owned parent will subscribe directly to 157 million of the A shares for CNY1.5 billion. CA said the net proceeds from the A share issue will be CNY5.6 billion and will go toward working capital expenditure and its acquisition of a stake in Air China Cargo
(ATWOnline, Jan. 20). Proceeds from the H share issue will be HK$1.04 billion, it said.