Cirrus Aircraft plans public listing to ‘play in a ‘$20bn marketplace’
The G2+ Vision Jet manufacturer Cirrus Aircraft is planning an initial public offering (IPO) via the Hong Kong Stock Exchange. The business – owned by the China Aviation Industry General Aircraft (CAIGA) since 2011 – filed an application with the exchange on June 8th. Cirrus CEO Zean Nielsen told Corporate Jet Investor Quarterly earlier this year the manufacturer is targeting a potential marketplace of $20bn.
Raising additional capital would enable the company to make further investments in people, new product development, production capabilities, facilities and efficiencies, according to the company this week. It would also enable Cirrus to expand its global service capabilities and strengthen IT and business infrastructure.
A spokesperson for the manufacturer said: “From time to time, Cirrus Aircraft explores options to raise additional capital. Our current work, made possible by the contributions of the Cirrus Aircraft team, has positioned the company as a global leader in personal aviation. A natural next step in that journey is exploring additional business and capital funding structures that enable even larger and more stable growth ahead.”
No timetable has been set for the listing, as the manufacturer’s application must undergo vetting by the Hong Kong regulators. The spokesperson told CJI: “We cannot provide additional information at this time as we are in a mandatory quiet period while working with the Hong Kong Exchange.”
Meanwhile, in comments published by our sister publication Corporate Jet Investor Quarterly earlier this year, Nielsen told us: “Cirrus plays in a $20bn sandbox or marketplace. We would like to dominate the market for jets below $6m. With the Vision Jet retailing between $3m to $3.5m, there’s quite a bit of room above us, with a lot of units at $8m and down.”
Cirrus’s parent company CAIGA is a subsidiary of the state-owned Aviation Industry Corp. of China (AVIC), which makes both military aircraft and commerical carriers.