China budget carrier Spring plans 2.5b yuan IPO

[SHANGHAI] Chinese budget carrier Spring Airlines said it plans to raise 2.5 billion yuan (S$505 million) in an initial public offering in Shanghai to fund fleet expansion.

The company plans to sell up to 100 million new shares for listing on the mainboard of the Shanghai Stock Exchange, according to a draft prospectus released last week.

Proceeds will be used to help purchase up to nine Airbus A320 aircraft and three A320 flight simulators, as well as to replenish working capital, it said in a document filed with the China Securities Regulatory Commission (CSRC).