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Firms fly on Tiger Airways IPO

Firms fly on Tiger Airways IPO

Minter Ellison and other firms have claimed roles on the recent initial public offer by Tiger Airways. _x000D_

MINTER Ellison has worked on the recent initial public offer by Tiger Airways.  

The IPO on the Singapore Stock Exchange was set to raise about A$200 million. 

Minter Ellison acted as the Australian legal adviser to Tiger Airways, and Latham & Watkins LLP acted as the company's Singaporean legal adviser. 

Minters' role included undertaking legal due diligence on all aspects of Tiger's Australian operations, drafting and reviewing those sections of the prospectus dealing with the regulatory environment for the Australian operations and potential risk factprs for investors. 

Minter Ellison's role also advised on the capacity of Australian institutional investors and Australian resident employees to participate in the IPO, and providing legal opinions to Tiger Airways, its financiers and the underwriters to the IPO. 

Lead partner on the deal, Alberto Colla, who worked with senior associate Chris Todd, both in Melbourne, said: "The success of the Tiger Airways public float has defied early scepticism, with the shares making a robust debut on the Singapore Stock Exchange closing at a 5 per cent premium on their first day of trading."

Colla said the travel industry, and particularly the volatile aviation sector, are undergoing major changes. 

The successful issue of Tiger was the first Asian airline offering in nearly five years. It is "particularly important and an indicator of a tentative resurgence in the IPO market". 

Colla argued there are signs of a resurgence in the market both in Australia and Asia. There has been an influx of corporate investors with access to significant cash holdings after actively managing their costs, adjusting their business model and raising capital during the global financial crisis, he said. 

"This means that sound, well priced equity offerings, either in the IPO market or the secondary capital market, will always be favourably received by corporate and retail investors."

The public float involved a sell down of existing shares as well as the offer of new shares, with the offer being heavily oversubscribed. The proceeds of the float are being used by Tiger to fund new aircraft purchases and establish a new operating base and pay down debt. 

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