Spring Airlines to go public

Privately-owned Spring Airlines is planning to issue its initial public offerings (IPO) in the Chinese stock market and go public, according to the China Business News Monday.
If listed successfully, the company will be the fifth domestic airliner on the A-share market.
Currently, it is consulting UBS Securities Company Limited for details and has filed in China Securities Regulatory Commission (CSRC) Shanghai Bureau.
Aircraft industry belongs to industries of high rates of assets and liabilities, and financing through IPO or in the secondary market requires the minimum cost, which is the best way for airline companies, according to the report.
Spring Airlines is still waiting for governmental approval, and will not invite any strategic investor or issue private equity, said an insider.
In 2010, the firm made net profits of 470 million yuan ($71.39 million), an increase of 240 percent year on year. In 2006, Citibank had estimated the company owned a market value of over $8 billion yuan ($1.21 billion).
Chinese airline industry in 2010 made large amount of profits, and if listed in 2011, Spring Airlines will gain a good offering price, said Li Lei, analyst from China Securities Co., Ltd.
Competitors Air China, China Eastern Airlines, China Southern Airlines and Hainan Airlines are all listed.