Press releases 2004
London Stock Exchange welcomes Air China to its Main Market
15 December 2004
(08:00 - London)
Air China today listed on the London Stock Exchange’s Main Market and on the Hong Kong Stock Exchange. The total capital raised via the dual listing in Hong Kong and London is approximately US$1.08 billion (£558m), which will be used by the airline to expand its fleet of aircraft and for other infrastructure investments.
To mark the occasion Mr. Shixiang Wang, Vice Chairman of Air China opened the London Stock Exchange’s markets, accompanied by Mr. Zha Peixin, Chinese Ambassador to the United Kingdom and Mrs. Clara Furse, Chief Executive of the London Stock Exchange.
Mr. Li Jiaxiang, Chairman of Air China said:
"This listing on the London Stock Exchange is a great milestone for Air China. Listing in London was a natural choice for us as Europe is an important part of our business. We look forward to a long relationship with our new investors, in particular Cathay Pacific whose strategic involvement will be of great benefit to us as we strive to develop Air China into one of the world's leading airlines."
Air China was able to use a single prospectus for its listings in London and Hong Kong due to the similar regulatory environments in the two financial centres.
Clara Furse, Chief Executive of the London Stock Exchange, said:
“Air China will be one of the key airlines carrying guests from around the world to the 2008 Beijing Olympics, so we are particularly pleased that such a high profile company has chosen a London listing to further their international ambitions. China is a key market for the London Stock Exchange and we anticipate further companies will follow their lead. Just as Air China is an important bridge between China’s dynamic economy and the rest of the world, the London Stock Exchange is the natural link between leading Chinese companies and global capital markets.”
Air China sold 2.8 billion shares, or 31 per cent of its equity in its flotation. Due to heavy demand from individual retail investors, the public portion of the float was lifted to 40 per cent of the total offering from 10 per cent, after it was oversubscribed 83 times. Demand from institutional investors was also high with institutions placing orders for 37 times more Air China shares than were available to them.
Air China were advised by Merrill Lynch and CICC Bank.
For further information, please contact:
Richard Webster-Smith Press Office +44 (0)20 7797 1222