HNA, which is selling a number of assets, is undergoing a wider reorganization under which it is partnering with companies to manage some of its assets. Reuters reported last month that HNA Group is seeking to raise as much as $1.5 billion by the end of this year in an investment fund that will serve a vehicle for the group's acquisitions.
Some of HNA's other recent IPO efforts have been delayed or scrapped. HNA Group's Swiss ground services and cargo handling unit, Swissport Group, deferred plans to float shares on the SIX Swiss Exchange, citing market conditions. HNA Group scrapped its planned listing of Swiss-based airline caterer Gategroup.
The new capital raising plans come at a time when Singapore state investor Temasek Holdings has expressed interest in buying into Hong Kong Airlines and its unit Hong Kong Express Airways, Reuters reported last month.
The document obtained by Reuters shows that Hong Kong Airlines is targeting annual revenue of HK$14.97 billion ($1.9 billion) in 2018 and a compound annual revenue growth rate of 15 percent between 2015 and 2018. Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) — a measure used by hospitality companies — are estimated to have grown 11.4 percent in 2017 to about HK$4.21 billion. Estimates for 2018's earnings were not provided in the document.
Hong Kong Airlines is a carrier that operates 38 aircraft and flies to 40 cities in the Asia Pacific, Australia and North America. Its asset base is estimated to have grown 65 percent to HK$12.97 billion by 2017 from net assets of HK$7.84 billion in 2016, according to the document.
Cathay Pacific Airways, another Hong Kong-based carrier, had annual revenue of HK$97.3 billion in 2017 and has a market value of $6.4 billion.