CIAL to float $625 Mn IPO

CIAL to float $625 Mn IPO

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New Delhi: Cochin International Airport (CIAL) plans to raise Rs 2,500 crore $625 million via an initial public offer slated anytime between April and December 2009, reported Business Standard.

The IPO, which will divest 26 percent of CIAL?s equity, will finance an aerotropolis, a maintenance, repair and overhaul (MRO) unit, and an aviation academy in the vicinity of the airport. CIAL intends to have a five-star hotel, two budget hotels, a convention center, an amusement park and a cultural park as part of its aerotropolis that will come up over 500 acres, while the MRO is slated across 40 acres.

"Of the 26 percent, 20 percent will be for the public and 6 percent will be given as employee stock options," said S Bharat, managing director, CIAL.

Ahead of the public offer, CIAL is planning a tie-up with two international airport developers to finance its projects. The consortium will include a technical partner and a financial investor and will be in place by May this year.

The company plans to bid for other greenfield and brownfield airport projects with its international partners.

The consortium is also in talks for developing a $500 million airport development project at Veerabila in Sri Lanka.

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