Chinese conglomerate HNA Group’s Hong Kong Airlines is considering an initial public offering in the “short to medium term” and tapping investors to raise funds through the issue of new shares and convertible bonds, a document reviewed by Reuters shows.

Ahead of the planned listing, HNA is seeking to raise about USD 350 million (£264 million) by selling new shares, expanding its equity base by 22%, according to the document dated April 2018. That would give the 12-year-old airline a pre-IPO valuation of about $1.6 billion, based on Reuters calculations.

The company also wants to raise up to USD 550 million via convertible bonds or tradable bonds before the listing, the document showed. The bond issue will be at a coupon rate of 8-to-10% for a two-to-five year period, according to the document.

These latest moves, previously unreported, signal its IPO plans for Hong Kong Airlines are back on after HNA tried to take it public a few years ago, eventually abandoning those plans in 2015. 

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