UPDATE 1-China Aircraft Leasing shares gain in HK debut

Thu Jul 10, 2014 10:16pm EDT

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(Adds details on listing, industry context)

SINGAPORE, July 11 (Reuters) - Shares in China Aircraft Leasing Group Holdings Ltd (CALG) rose 3 percent in its Hong Kong trading debut on Friday, as Asia's first listed plane lessor seeks to tap into voracious appetite for aircraft in the world's fastest-growing aviation market.

The initial public offering by CALG, partly owned by a subsidiary of state-backed financial conglomerate China Everbright Group, raised HK$729 million ($94 million). CALG plans to use nearly all the funds raised to acquire aircraft.

Shares in the lessor, which has a 3 percent share of the Chinese aircraft leasing market, last traded at HK$5.7. That compared with an IPO price of HK$5.53, the bottom of an indicated range of HK$5.53-HK$7.82.

China's 800-plane leasing market is dominated by the world's biggest lessors, International Lease Finance Corp, now part of AerCap, and GECAS, a unit of General Electric.

But local lessors are fast expanding, setting up offices in the aircraft financing hubs of Singapore and Ireland, and some even placing direct orders with plane makers, to take a bigger share of the booming industry.

CALG competes against the bigger leasing arms of Industrial and Commercial Bank of China and Bank of Communications and global majors such as Singapore-based BOC Aviation, a unit of Bank of China.

CICC, China Everbright Securities and CCB International were joint bookrunners on the CALG IPO.

($1 = 7.7496 Hong Kong Dollars) (Reporting by Anshuman Daga; Editing by Kenneth Maxwell)

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