Hong Kong Airlines is preparing to raise a combined US$500 million in what could be Hong Kong's first initial public offering to raise funds in yuan and Hong Kong dollars.
The float can be conducted as a "dual tranche single counter", where companies issue shares in yuan only, or in a "dual tranche dual counter" model, where shares can be issued in Hong Kong dollars and yuan.
The carrier plans to use the second model under which it will sell two sets of shares, one in yuan and the other in dollars.
The two sets of shares carry different stock codes, but holders enjoy the same rights, according to people involved in the deal.
The company is owned by mainland carrier Hainan Airlines.
Hong Kong Airlines' sale, if successful, would be a landmark deal for the stock exchange and the city, which have been aggressively promoting greater use of yuan for investment purposes as the central government pushes forward with the internationalisation of the yuan.