Air China plans US$1b IPO in Shanghai
(AP)
Updated: 2006-06-14 12:55
Air China Ltd. is planning an 8 billion yuan (US$1 billion; euro800 million)
initial public offering on the Shanghai Stock Exchange, the official Xinhua News
Agency reported Wednesday.
The IPO is among many planned by major state companies following the end of a
yearlong moratorium on fundraising activities for shareholding reforms.
Regulators are hoping the influx of big name companies might help boost investor
confidence in the markets.
The IPO is planned for "later this year," Xinhua said, citing Zheng Bao'an,
secretary of Air China's board.
"There is no timetable for the company to be listed on the mainland as we are
still waiting for the approval from the commission," Zheng was quoted as saying.
The Beijing-based company said it submitted an application to the China
Securities Regulatory Commission for the IPO. It earlier said it was seeking
permission to offer shares in Shanghai, with proceeds to help finance aircraft
purchases.
Air China, which has shares traded in Hong Kong, earlier said it plans to
sell no more than 2.7 billion yuan-denominated shares, or about 28.62 percent of
its existing share capital, to qualified institutional investors.
Air China's shares were unchanged Wednesday morning at 2.9 Hong Kong dollars
(37 U.S. cents; 29 euro cents).
The former government monopoly carrier operates many of China's international
flights _ including nonstop from Beijing to New York. It was broken up into
smaller regional carriers in the early 1980s in the first of several rounds of
industry restructuring.
The airline is upgrading its jets and facilities amid intense competition
from major rivals such as China Eastern Airlines Corp. and China Southern
Airlines Co.
The share listing requires the approval of the China Securities Regulatory
Commission and other government agencies.
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