China Southern Airlines to issue A shares
( 2003-07-10 09:33) (Xinhua)
China Southern Airlines
Company has announced that it plans to issue 1 billion A shares on July 10 at
2.7 yuan (0.3 US dollars) per share.
Most of the revenue earned in the share market will be used to purchase
Boeing 737-800 planes along with the necessary on-board equipment, according to
an official of the company.
The issuance of A shares represents an important channel for increasing its
capital inflow and improving its capital structure. In addition, the move will
help the company to enhance its management level and reduce its management
costs, said Yan Zhiqing, chairman of the board of China Southern.
The company's total capital stock will reach 4.37 billion shares after the
issuance, with the state-owned shares accounting for 50.3 percent, H shares for
26.8 percent and A shares for 22.9 percent.
By the end of 2002, China Southern Airlines had 122 aircraft and 349
operational routes. Its passenger volume surpassed 20 million in 2002, occupying
one-fourth of China's aviation market. Also in 2002, the company became the
first Chinese airline to be ranked among the world's top 20 airlines.
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