Japan Airlines looks to raise $8.5 billion next month in IPO

The net profit for JAL in April-June climbed to 26.9 billion yen ($342.63 million) from Y12.7 billion in the same period a year earlier

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Japan Airlines' (JAL) net profit for April-June climbed from Y12.7 billion to 26.9 billion yen ($342.63 million) in the same period. However, JAL didn't comment in its statement on the IPO, expected to be worth at least $6 billion making its the world's second-biggest IPO this year second to Facebook Inc. (FB).

Following this, the Tokyo Stock Exchange on Friday gave the green light for a relisting of Japan Airlines' (JAL) stock on September 19, less than three years after the former national flag carrier collapsed under the weight of a bloated cost base and $25 billion in debt.

In a regulatory filing, the airline gave an estimated price per share of 3,790 yen. That would value the stake held by the state-backed fund, which is planning to sell all of its shares in the IPO, at 663 billion yen ($8.5 billion).

That estimate is in line with expectations. Sources with knowledge of the matter had told Reuters that the Enterprise Turnaround Initiative Corporation of Japan (ETIC) was eyeing an IPO of 600 billion to 700 billion yen. The fund injected 350 billion yen of taxpayer-backed funds into the carrier in 2010.

The carrier, which collapsed early in 2010 in Japan's biggest-ever bankruptcy by a non-financial company, said revenue grew 13% in the period to Y286.7 billion, helped by a 22% rise in international passenger flight revenue to Y95.9 billion yen.

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