Travelsky sets its sights on raising $1.14b for expansion

Travelsky Technology, the dominant provider of information technology solutions to China's travel industry, is planning to raise up to HK$1.14 billion through a main-board listing to fund infrastructure improvement and expansion.

The company is planning to issue 270.32 million new H shares at between HK$3.50 and HK$4.25 each.

The price range represented a price-to-earnings multiple of 11.8 to 14.4 times - 250.55 million shares will be placed to institutional investors and the remaining 19.76 million offered to the public in Hong Kong.

The public offer will open today and close on Thursday, when the final pricing will be set before the listing debut scheduled for February 7.

Sha Hongjiang, deputy general director of the aviation industry's regulator, the Civil Aviation Administration of China, said the listing was 'an important part of the industry's continued restructuring'.

Total air passenger volume rose 10.6 per cent last year from 1999 and cargo transportation volume rose 14.5 per cent.

Assuming a final pricing of HK$3.87 per share - the mid-point of the price range, Travelsky could raise about HK$969.5 million.