Singapore based Tiger Airways is going to float an IPO next Monday in a bid to raise proceeds worth $540m for meeting its financial needs. The news assumes significance as Tiger's rival Malaysian Air Asia is also proposing secondary listing on the Bangkok Stock Exchange.

The low-cost carrier has appointed Citigroup, Singapore's DBS bank and Morgan Stanley as its fund manager. Chief Executive Tony Davis recently added, "Slowly but surely we keep adding routes and we keep adding more aircraft to the bases and I think that's going to be the theme going forward into 2010."

Tiger Airways, 49-percent owned by Singapore Airlines, has ordered for a fleet of 50 Airbus A320s and the proceeds from the IPO are most likely to be used for financing the aircrafts deal and expanding its operations in Australia. However, it is not yet clear whether the carrier will allow shareholders to subscribe the offer.

The carrier going to sell 51 per cent of its shares is expected to raise anything between $200m and $1bn through IPO, according to some media reports. Tiger Airways owner includes Singapore state investor Temasek, a company controlled by the founding family of Irish airline RyanAir and investment firm Indigo Partners LLC.