Airport operator hopes IPO plan flies
A Guangzhou airport operator will soon submit to the China Securities Regulatory Commission (CSRC) a formal application for an initial public offering (IPO) on the Shanghai Stock Exchange.
Guangzhou Baiyun Airport Shareholding, which runs the Baiyun airport, plans to issue about 300 million A shares this year, aimed at raising capital to fund the construction of a new international airport, known as Guangzhou Baiyun International Airport, China Securities Express quoted sources as saying.
The present airport is an important aviation hub in southern China.
In September, Guangzhou Daily reported that the capital to be raised from the share sale would fund 35 per cent of the new 14.7 billion yuan (about HK$13.77 billion) airport. The size of the IPO could amount to about five billion yuan.
The new airport, which is under construction and located next to the existing Guangzhou Baiyun Airport, is expected to be completed in 2003.
Beijing is restructuring and strengthening its major industries such as aviation to increase their ability to compete ahead of its expected World Trade Organisation accession this year.
The People's Daily yesterday said China would build five new airports in the east of the country during the 10th Five-Year Plan (2001 to 2005) at a cost of about seven billion yuan. A total of 11 new airports were built in eastern China during the Ninth Five-Year Plan. People's Daily said only six of eastern China's 33 civilian airports were profitable.
