India's Afcom Leases Two B737Fs for IPO Launch

Afcom Soars to Success

A draft prospectus filed with the Securities and Exchange Board of India by Afcom Holdings Limited, doing business as Afcom (Chennai), discloses that the cargo operator has obtained two B737-800(BCF) on dry leases for eight years. The documents describe plans for obtaining funds through a share offering.

The two aircraft, VT-AFO (MSN 28617) and VT-AFC (MSN 30160), are both from Spectre Air Capital. VT-AFO is a 24.34-year-old aircraft that served Yakutia Airlines (R3, Yakutsk) till 2022. It was converted in Guangzhou last year and sent to Hyderabad International in September, where it has stayed in storage since. VT-AFC, 24.03 years old, last flew for Azur Air (ZF, Krasnoyarsk Yemelyanovo) before retiring in 2022. The aircraft was later converted in Jinan and transported to Hyderabad last October, and it has remained so ever since.

Prior to acquiring its own aircraft, Afcom had relied on other operators to provide aircraft, most notably Asia Cargo Airlines (GM, Jakarta Halim), which operated on Afcom's behalf using a B737-400 type, and Airmark Indonesia Aviation (Jakarta Halim), which also supplied a B737-400 type on a "quasi charter basis." According to the prospectus, the Airport Authority of India has assigned nine overnight parking slots at Chennai Airport.

The company intends to issue 6,840,000 shares with a face value of INR10 (USD0.12) each. The actual issue price has yet to be set. Afcom intends to use the funds to expand its fleet and network, improve safety and quality standards, and increase operational savings.