Two fast-growing Chinese carriers, China Southern Airlines and Hainan Airlines, are seeking to sell more shares domestically and overseas to help fund new aircraft purchases and ensure they continue to grow at rapid rates.
Guangzhou-based China Southern, the country's largest carrier, in March won shareholder approval to sell shares domestically to help fund new aircraft purchases and help it repay long-term loans. The carrier says one billion shares will be sold, equivalent to 22.86% of its enlarged issued share capital. The share issue will reduce the 65.2% stake currently held by state-owned Southern Airlines Group to 50.3%. Another 34.8% of China Southern's shares are traded in Hong Kong and New York, and this portion will be reduced to 26.85%.
Meanwhile, Hainan Airlines, which after recent acquisitions claims to be the fourth-largest airline grouping in the country, says it will seek a listing on Wall Street this year to help raise more funds for expansion. The Shanghai-traded carrier says it will apply to list on the New York Stock Exchange using American Depository Receipts.
Source: Airline Business