MANILA, Philippines - Philippine conglomerate JG Summit Holdings Inc. said on Tuesday it plans to raise around P12 billion ($262 million) from an initial public offering of its airline unit to fund the purchase of more aircraft.

Cebu Air Inc., which operates budget carrier Cebu Pacific, will offer more than 125 million new common shares at a maximum price of P95 per share.

"We've prepared all the documents so that if the opportune time comes and market conditions allow it, we'll be ready," BJ Sebastian, investor relations officer at JG Summit told Reuters. The company was waiting for regulatory approvals before setting the exact timing of the IPO, he added.

Shares of JG Summit jumped as much as 9.5% to P8.10, the highest since July 2008, after the announcement, on heavy volume 3.7 million shares, five times its 30-day average turnover.

Sebastian said the company would offer a portion of the IPO to foreign investors but declined to give the exact breakdown pending regulatory approvals. He said most Philippine IPO deals have been structured for a 70-30 offer ratio in favour of foreign investors.

The Securities and Exchange Commission said in a public notice carried by a local daily on Monday that Cebu Air would also sell 110.3 million shares in a secondary offer under the same terms as the IPO, as well as over 20 million new common shares for its employee and executive stock option plans.

JG Summit, owned by tycoon John Gokongwei, has been planning an IPO for Cebu Air, which operates the country's No.2 carrier, in recent years but had to push back the offer due to volatile market conditions bought on by the global financial crisis.