Air China plans year-end launch for IPO in HK

Beijing-controlled Air China aims to begin marketing an initial public offering, or IPO, worth about US$500 million towards the end of the year.

But one source says the offering could possibly be pushed back to early next year. China Radio International reported Sunday.

Other sources say the timing of the offering would depend on when the Hong Kong stock exchange's listing committee holds a hearing on the airline's application.

Air China filed its application with the bourse last month.

Industry experts say Air China and its underwriters - China International Capital and Merrill Lynch - will not begin marketing the deal before the end of October.

Air China is expected to sell 27 to 28 per cent of its enlarged share capital at eight to 10 times its forecast 2004 net profit. The carrier, which earned 93 million yuan last year, would thus be priced at a discount to its overseas-listed mainland rivals.

China Southern Airlines trades at 17 times 2004 forecast earnings, and China Eastern Airlines trades at 12 times forecast earnings.

Source: CRIENGLISH.com