Tiger Airways plans IPO

Tiger Airways is reportedly planning an initial public offering of up to $US500 million to fund new aircraft and expansion in Australia.

The company, which is 49 percent-owned by Singapore Airlines, is understood to be planning to sell up to 51 percent of its shares, which would value the airline at about $1 billion.

The airline has tapped three banks for an initial public offering expected in January. 

Citigroup and Morgan Stanley are joint book-runners and joint lead managers for the IPO, while DBS is joint lead manager.

The funds would be used to finance expansion, including new Airbus A320 aircraft.