Hong Kong Airlines is mulling an IPO in the in the next few years while raising US$900 million from investors via the issuance of new shares and convertible bonds.

The airline's valuation would be approx. $1.6 billion, pre-IPO.

HNA is seeking to raise about $350 million by selling new shares, along with another $550 million via convertible bonds, at a coupon rate of 8-10% for a two-to-five year period.

Hong Kong Airlines aims to hit 2018 revenue of HK$14.97 billion.