Cebu Pacific airlines cabin crew perform a safety demonstration routine during a ceremony inside a trading floor of the stock exchange in Makati's financial district of Manila. PHOTO: REUTERS
MANILA - BUDGET airline Cebu Air Inc gained more than 6 per cent in its Philippine stock market debut on Tuesday after raising at least US$539 million (S$698 million) from an initial public offering - the biggest ever for a low cost carrier.
Philippine Stock Exchange Chairman Hans Sicat said he hoped the listing - also the biggest ever in the Philippines in dollar terms - would spur growth in the country's tourism and aviation industries, which still lag behind its Southeast Asian neighbours.
The airline recently made headlines with a YouTube video of flight attendants dancing to music by Lady Gaga to keep passengers from snoozing through in-flight safety demonstration. The attendants danced again on Tuesday on the floor of the stock exchange before trading opened.
Cebu Pacific, as the airline is known, sold 186.6 million shares in its IPO at 125 pesos (S$3.75) each. Some 28 million overallotment shares are also expected to be sold, which will raise the total proceeds.
The shares closed on Tuesday up 6.4 per cent at 133 pesos.
Cebu Pacific President Lance Gokongwei said his company aims to increase the number of passengers from 10.7 million this year to 20 million by 2014 with the delivery of 24 new Airbus aircraft over the next four years.