Formerly just six years old, Starlux Airlines has now made history as Taiwan’s first airline to complete its public listing. We had the opportunity to sit down with Chairman Chang Kuo-wei, who is eager to position the airline as a premium brand in the aviation market.
On October 25, Starlux Airlines celebrated its debut on the stock market with a lot of buzz surrounding the event. The airline became the first in Taiwan to go public just six years after its establishment, making waves not only with the number of shares auctioned but also with the total amount of capital raised—both figures representing the largest scale seen in the current market. Chang emphasized that Starlux is an international airline focused on its operations, rather than merely engaging in stock speculation. Listing on the stock market offers investors a chance to support and invest in a premium airline like Starlux.
On its first trading day, the stock opened at NT$20 and soared by 53% to close at NT$30.75. Investors who secured shares and bought the maximum allowed were able to cash out with profits of around NT$20,000 (approximately $623) on the very first day. The trading volume reached an impressive 252,000 shares, the highest on that day, leaving the second-place contender far behind with only 105,000 shares.
Last year, as Starlux prepared for its initial public offering (IPO), the stock price fluctuated significantly, peaking at NT$50.5 and bottoming out at NT$31.35. This volatility prompted some investors to form online support groups. With the transition to being a publicly listed company, the stock is expected to remain a hot topic among investors. Notably, there is keen interest in other airlines like Tigerair, EVA Air, and China Airlines as well.
Starlux had a total of 79,900 shares available for underwriting, with a remarkable 1,607,558 applications received over three days—making it the only IPO this year to surpass one million applications, with a success rate of 2.48%.
In mid-October, the pre-IPO auction drew significant attention, with 319,600 shares available and valid bids totaling 687,938, reflecting an oversubscription ratio of 2.2—marking the auction and total bid amounts as the largest in the market to date.
During his speech, Chang humorously reflected on the journey from obtaining approval for establishment in 2018 to navigating four years of operations, amidst the challenges of a global pandemic. “Our journey has been full of ups and downs, much like today’s weather. Despite the turbulent times, we have stood firm, and we entered the stock exchange with great determination,” he shared.
Chang highlighted the advantages of being publicly listed for investors, saying it provides them with better security and efficiency while granting Starlux access to diverse funding sources. He reassured those who weren’t able to secure shares this time by mentioning that as a young company, Starlux will have additional fundraising opportunities in the future, allowing more people to participate.
Looking ahead to the next phase of business expansion, Chang stated that Starlux’s fleet currently consists of over 20 aircraft, with ambitions to grow to over 50 within the next two years. The market demand is strong, and plans for an additional ten long-haul aircraft are already in the works.
Starlux has always prioritized safety and remains committed to providing exceptional service, a dedication that has garnered substantial support from travelers. Chang views the feedback received as motivation for continuous improvement and growth.
When asked about being compared to established competitors like EVA Air, China Airlines, and Tigerair, Chang joked, “I’ve always seen myself as the little rabbit, quietly navigating the landscape while the bigger players dominate. Each airline has its own strengths, contributing to a flourishing civil aviation sector in Taiwan, and I think Tigerair is doing extremely well.”