Spring Airlines gets approval for IPO and will make A share listing
Spring Airlines is finally ready to make an IPO and will make an A share listing.
After waiting for five months, Chinese domestic LCC Spring Airlines is finally ready to make an IPO. On the 15th of October the China Securities Regulatory Commission (CSRC) website posted the “IEC 2014 No. 171 verification results” approving Spring Airlines Co Ltd’s listing. Spring Airlines will make an A share listing.
Spring Airlines began as a travel company that specialized in the group tour travel market. From 2010 Spring Airlines has made major changes in to prepare for a public listing. They restructured their shareholding structure, started to increase their business in the independent traveler sector, and decreased the customer contribution from tour operators.
For the past three years the amount of transactions from Spring Airline’s charter flights was 13.30%, 14.30%, 15.91% of operational revenue. This may have been the decisive factor in the CSRC’s approval of Spring Airline’s IPO. Spring Airlines estimates that they will be able to list A shares for sale within the year. At that time they will join the four major national airlines (Air China, China Eastern Airlines, China Southern Airlines, and Hainan Airlines) to become the fifth publicly listed airline company in China.
Spring Airlines Spokesperson Wuan Zhang says, “A public listing for our company will mean gaining capital market funding which will help the company rapidly expand in scale and increase its market share. This IPO is an important strategic opportunity for Spring Airlines.”(Translation by David)