Swissport mulls a Switzerland IPO in 2018, opening up a funding avenue for cash-starved HNA
HNA is seeking at least 2.7 billion Swiss francs in valuation for Swissport, for which it paid that amount in 2015 to own.
Swissport, the world’s biggest ground and cargo handler at airports, said it’s aiming to raise capital through an initial public offering later this year in Switzerland, in a move that opens up a new funding source for its cash-starved parent HNA Group.
Based in Opfikon, Switzerland and wholly owned by HNA since 2015, Swissport plans to list its stock on the SIX Swiss Exchange in Zurich, according to a statement. Hainan-based HNA, which paid 2.73 billion Swiss francs (US$2.81 billion) for Swissport, is expected to retain a long term strategic stake after the IPO, operating the services company as an independent business, Swissport said.
“The objective of the contemplated IPO is to accelerate Swissport’s long term growth strategy, provide additional financial flexibility and liquidity, and position the company to strengthen its leadership position and service offerings,” Swissport’s chief executive Eric Born said, without disclosing the size of its offering or the amount of funds raised.
HNA, which already owns China’s fourth-largest airline fleet, is seeking a valuation of at least 2.7 billion Swiss francs for Swissport, according to a Reuters report, citing unnamed sources.
In a response to the South China Morning Post, Swissport said Rothschild is advising the company, but refused to disclose information surrounding the financial metrics of any proposed IPO at this time.