SINGAPORE: Budget airline Tiger Airways said Monday it had raised 247.7 million Singapore dollars (178 million US) in its initial public offering to help fund its ambitious plans in the growing Asian market.

The IPO, the first by an Asian carrier in five years, was priced at 1.50 dollars per share and means the Singapore-based carrier will have a market capitalisation of 781.3 million dollars, Tiger Airways said in a statement.

The funds raised will go towards mainly aiding Tiger Airways' plans to expand into the region where air travel demand is tipped by industry analysts to continue growing at a rapid pace.

"Going forward, we aim to continue growing our airlines in Singapore and Australia as well as establishing new airlines in additional markets in Asia," chief executive Tony Davis said in the statement.

"Tiger Airways is well-positioned to leverage the opportunities for growth in air travel in Asia and Australasia, the fastest growing aviation market in the world," he said.

Shares of Tiger Airways are to begin trading Friday on the Singapore Exchange.

Tiger Airways, which is 49-percent owned by Singapore Airlines, is competing with Jetstar Asia and Malaysia's AirAsia, among others.

It said in a statement last week it would set aside 166 million dollars of the proceeds from the IPO to pay for the planned purchase of new jets.

The carrier wants to expand its current fleet of 17 Airbus A320s to 68 by December 2015 as it plans to fly to more destinations within the region and in Australia.

It is also looking to establish new operating bases and airlines when the opportunities arise, as well as repay short-term loans.

Tiger said the region was poised to be the biggest travel market by 2020 and was aiming to expand its route network to take advantage of growing demand for air travel.

Tiger, which began its first commercial flights in September 2004, flies from Singapore to destinations across Asia including popular holiday spots such as Penang in Malaysia, and Bangkok and Phuket in Thailand.

It has also expanded into Australia where it offers domestic flights between key cities and towns across the continent.

In its prospectus, Tiger said it made a net loss of 50.8 million dollars and revenues of 378 million dollars in the financial year ended March 2009 compared to a profit of 9.9 million dollars on income of 303.8 million dollars in the previous year.

In the six months to September 2009, losses totalled 8.3 million dollars which was smaller than the 25.2 million dollars recorded in the same period the year before.