MANILA, Philippines?The Securities and Exchange Commission has approved an initial public offering planned by budget carrier Cebu Pacific Air worth as much as P25.7 billion.

The offering consists of about 235.6 million shares at an indicative price of P95 per share, for a total size of P22.38 billion. In case of strong demand, Cebu Pacific has the option to upsize by another 35.33 million shares worth an additional P3.35 billion.

The public listing of shares on the Philippine Stock Exchange, which still has to approve this offering, is targeted by May 4 this year.

The offering will be a combination of primary (53 percent) and secondary shares (47 percent), which will raise P11.9 billion in fresh money for the company's fleet expansion program. About P9.12 billion of the proceeds will fund the pre-delivery of additional Airbus A320 aircraft.

Cebu Pacific has separately earmarked 20.4 million shares to its employees, who will be given the option to buy company shares at a discount.

Proceeds from the sale of secondary shares will go to the controlling Gokongwei group.

The budget carrier has mandated Deutsche Bank AG and J.P. Morgan Ltd. as international issue managers, and ATR Kim Eng Capital Partners Inc. as the domestic underwriter.

Majority of the shares to be sold are targeted to be taken up by overseas investors.
Cebu Pacific's parent company JG Summit Holdings had long been planning the IPO but had to defer the exercise when the US-epicentered global crisis erupted.