Jet IPO subscribed 18.7 times

Jet IPO subscribed 18.7 times
Jet Airways' IPO of at least $375 million was subscribed 18.7 times, generating demand in excess of $8 billion as investors bought into India's travel boom, bankers working on the deal said on Friday.

About 88 percent of the bids for the initial public offer (IPO) by Jet Airways (India) Ltd. came in at the top of a pre-determined band of 950-1,125 rupees, they said.

The remaining bids were at about 1,000 rupees, reflecting strong demand for Indian paper, when the IPO closed late on Thursday.

The pricing would be done over the weekend, bankers said.

"The overwhelming demand makes one believe that the offer should be priced at the top end, but investors are hoping that the company would leave something at the table," one of the six bankers working on the mandate told Reuters.

The IPO for 17.27 million shares, or 20 percent of Jet's expanded equity, was fully sold within 10 minutes of the opening last week.

At the top end, Jet would be valued at about 97 billion rupees ($2.2 billion) and the IPO is expected to raise between 16.4 billion and 19.4 billion rupees ($375 million-$444 million).

The robust demand will encourage unlisted companies such Air Deccan and the state-run Indian Airlines Ltd. and Air-India to expedite their public offer plans, bankers said.

Share issues by Indian companies in 2005 are expected to outstrip last year's record $7.0 billion, as firms build war chests for acquisitions and to set up new plants to meet the growing needs of an expanding economy.

India's economy, Asia's fourth-biggest, is forecast to expand by 7 percent in the fiscal year to March.
Here is another article of interest for all you investors!

The dizzy heights touched by the Jet Airways IPO on the Bombay Stock Exchange has astonished the US airline industry, much of which is in the throes of terminal illness with several carriers fighting bankruptcy. Jets 17.26 million shares was aimed at raising $445 million. Analysts estimate that a sale at the top of the pricing range would put Jets value at $2.2 billion. That would make Jet bigger in terms of market cap than the worlds largest carrier American Airlines, a 700-plane behemoth with a market cap of $1.5 billion.

It will also be bigger than Delta ($653 million) and the nearlybankrupt United Airlines ($142 million) combined, not to speak of overtaking its semi-namesake Jet Blue, which at $1.9 billion is one of the silverlinings in a bleak American aviation cloud.

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Are you a day trader?