Tiger Airways said to pay Airbus order with IPO proceeds

Tiger Airways is set to welcome 2010 with an initial public offering to help finance its Airbus A320s purchase.

According to a Reuters report, the IPO proceeds are planned to be part of the budget carrier's allocation for its 50 Airbus A320s order. Listed at approximately $77 million each, the new Airbus A320s will be delivered starting next year and will increase Tiger's fleet size from the current 17 count.

Sources said Citigroup, Morgan Stanley, and DBS have been tapped to be joint book-runners and/or joint lead managers for the IPO. Tiger said, though, "At this time, no firm decision has been made (and) the company continues to review its various strategic options."

Tiger Airways is 49 percent owned by Singapore Airlines, 16 percent by RyanAsia, 11 percent by Temasek, and the remaining by Indigo Partners LLC.