StarLux Airlines, Taiwan’s newest international carrier, has launched a plan to increase its paid-in capital by NT$3.3 billion (US$109 million) to strengthen its financial structure after suffering massive losses during the COVID-19 pandemic.
The carrier, founded by former EVA Airways Chairman Chang Kuo-wei (???), also announced Friday that it has launched a recruitment campaign to prepare for an expected boom in business as the government hints at further easing COVID-19-related border controls.
Under its rights issue plan, StarLux will issue 275 million shares at NT$12 per share, a premium over the stock’s face value of NT$10, to raise NT$3.3 billion.
The carrier said the rights issue is scheduled to be completed by the end of August and will boost its paid-in capital to about NT$18.67 billion.
Speaking with CNA, StarLux spokesman Nieh Kuo-wei (???) said Chang’s second oldest brother Chang Kuo-ming (???) and his brother-in-law Cheng Shen-chih (???) have participated in the rights issue.
According to local media reports, Chang Kuo-ming and Cheng have pledged to pour NT$300 million to NT$500 million each into the rights issue, and the carrier has reserved about 10 percent of the shares up for sale for its employees.
Following the rights issue, StarLux aims to list its stock on the emerging market at the end of September. In Taiwan, a company has to trade its shares on the emerging market for at least six months before it can be listed on the main stock exchange or over-the-counter market.
StarLux said it will hold an investor conference in September before the listing on the emerging market.
According to StarLux, its revenue rose 80 percent in the first half of 2022 from a year earlier to NT$630 million but still incurred a net loss of NT$2.66 billion, compared with a net loss of NT$1.37 billion in the first half of 2021.
The carrier had a loss per share of NT$2.03 in the January-to-June period, compared with NT$1.24 in loss per share a year earlier, the company said.
Since its establishment on May 2, 2018, StarLux has lost a cumulative NT$9.598 billion as of the end of June.
Despite the losses, StarLux remained upbeat about its business outlook once border controls are eased, and is advertising 60 types of openings, including crew members, ground services staff, legal and financial professionals, information technology talent, and engineers to support the expansion of its fleet.
As of July, StarLux’s fleet consisted of nine A321neos and two A330neo, and it is expected to expand to 13 A321neos, four A330neos and two A350-900s by the end of 2022.
Source: Focus Taiwan News Channel