China Express Seeks Approval for Shenzhen IPO
By Lena Ge, China Aviation Daily | Feb. 06, 2017
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China Express Airlines, a regional carrier based in Chongqing, is planning to launch an initial public offering (IPO) in the Shenzhen Stock Exchange, raising as much as 1.68 billion yuan for fleet expansion and training arms.
The Chongqing-based carrier proposed to issue up to 40.5 million shares, or 10.11% its total capital after the IPO, according to a draft prospectus filed Friday with the China Securities Regulatory Commission (CSRC).
The draft prospectus shows that the airline plans to issue the shares at a par value of 1 yuan per share, which would be traded on the Shenzhen Stock Exchange.
The proceeds will be used to buy up to six Bombardier CRJ900 jets and three back-up engines (1.377 billion yuan), and to fund its own flight academy (300 million yuan), China Express said in the draft.
The release of its draft IPO plan marks a step toward listing after years of waiting. The CSRC typically arranges the "preliminary disclosure" of a draft IPO plan after accepting a listing application, followed by several rounds of feedback and reviews before giving a go-ahead to the issuer.
Known as China's first private regional carrier, China Express now operates a fleet of 26 Bombardier CRJ900 aircraft. It mainly operates domestic passenger and cargo flights, business and tourist charter services, as well as flights to Hong Kong, Macau and neighboring countries.
Currently, China Express has established five operating bases in Guiyang, Chongqing, Dalian, Hohhot and Xi'an, flying more than 70 routes; in which regional services account for around 95% of the total. Meanwhile, it connects to 70 domestic airports, covering 36% of national wide regional destinations.
China Express is set to become the eighth listed airlines once the deal completed following Spring Airlines and Juneyao Airlines.