Japan airline ANA sets share price

Japan's All Nippon Airways (ANA) on Wednesday set the price for its huge new share offering in a move aimed at raising more than $2 billion.

The airline announced it was selling 914 million new shares priced at 184 yen ($2.33) each, with the proceeds used to fund a huge purchase of Boeing Dreamliners and boost its international network.

The price represents a discount of around four percent on the closing price on the Tokyo Stock Exchange on Wednesday, when traders were paying 192 yen.

Shares will be on sale Thursday and Friday, a company announcement said.

"Proceeds...estimated to be up to 175,111 million yen are planned to be used for capital expenditures, including the acquisition of aircrafts, chiefly the fuel-efficient Boeing 787 by the end of March 2015 for the main purpose of expanding the international route network," the company said.

ANA expects to receive 55 of the aircraft which have been lauded as the future of aviation for their use of lightweight, fuel-saving materials.

The carrier credited a pickup in global travel and cost cuts for its record operating profit of about $1.2 billion in the year ended March, with once-bankrupt rival Japan Airlines also booking a strong profit in the period.

Japan's aviation market has long been dominated by ANA and Japan Airlines, but this year sees the launch of a number of new low-cost carriers that are expected to provide competition to the established airlines.

Both airlines have invested in new low cost start-ups.

Flag-carrier Japan Airlines, which went bust in one of the nation's biggest-ever bankruptcies in 2010, applied last month to re-list its shares in Tokyo by mid-September, according to local media.

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