Air Incheon targets major industry leap, IPO

[Courtesy of Air Incheon]

South Korean cargo airline Air Incheon was named the preferred bidder to acquire a cargo division owned by Asiana Airlines Inc., with a bid estimated between 450 billion and 500 billion won ($361 million). the cargo airline is expected to sign a stock purchase agreement (SPA) in late July 2024 after completing two weeks of due diligence.

Air Incheon, founded in 2012 as a Korean cargo carrier, operates four B737-800SF aircraft and focuses on cargo operations across Asian routes. The carrier, whose biggest stakeholder is the investment firm Socius Private Equity, was the sixth-largest cargo carrier in the country as of 2024. With the Asiana Alirlines acquisition, it is poised to become the second-largest player in the industry.

Despite concerns that Air Incheon, which mostly runs short-to mid-haul routes, could face challenges as it acquires a larger cargo business, Socius Private Equity affirmed that its consortium has robust financial backing by selecting Korea Investment Private Equity as co-general partner (GP), as well as securing Shinhan Securities Co. and Korea Investment & Securities Co. as lenders.

Once the acquisition is completed, Air Incheon aims to go public, with the investment banking industry estimating Air Incheon‘s enterprise value to be trillions of won.