China Eastern Airlines plans to raise up to RMB 15 billion ($2.23 billion) in a share sale to expand its fleet and to replenish working capital, the company said in a filing to the Shanghai stock exchange on Tuesday.
The Chinese airline will use RMB 10.5 billion of the proceeds from the share sale to fund the purchase of 38 airplanes which are expected to be delivered between 2022 and 2024, it said in the filing.
The remaining RMB 4.5 yuan from the share sale would be used to boost the airline's working capital, according to the filing.
China Eastern Air Holding Company Limited, controlling shareholder of the company, would invest at least RMB 5.0 billion in the share sale, according to the plan.
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