Top Biz News
Air China plans mainland listing
By Lu Haoting (China Daily)
Updated: 2006-08-01 10:58
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Air China Ltd, the nation's flagship carrier, is expected to issue A shares by August 22, making it the only Chinese airline listed in Hong Kong, London and Shanghai.
The carrier plans to sell no more than 2.7 billion renminbi-denominated shares, or a 22.25-per-cent stake, it said in its listing prospectus.
The issue price will not be lower than 90 per cent of the average closing price of Air China's H shares. The company is conducting price consultations until Wednesday and will announce the final price on August 8.
If the market price of the shares falls below the issue price, China National Aviation Holding Co (CNAHC), the controlling shareholder of Air China, will acquire shares through the secondary market at a price not lower than the then market price of the shares to restore Air China's A share price, according to the prospectus. The accumulated increase in shareholding of CNAHC will not exceed 600 million A shares.
"The listing will provide new financing channels for Air China's future expansion," said Rao Xinyu, the company's board secretary.
Air China is expected to raise 8 billion yuan (US$1 billion) through the domestic listing and will use the capital to finance the purchase of 45 aircraft as well as its airport expansion project in Beijing.
The airline listed its shares in Hong Kong and London in a US$1.2 billion initial public offering in December 2004.