Shenzhen Airlines mulls IPO

Shenzhen Airlines may seek a full or partial listing in Hong Kong or Shanghai to provide more capital for expansion, the South China Morning Post reported. "We have plans to list the company wholly or partially and will get it done quickly if it is needed," Chief Executive Li Kun said. Li said he expected the airline to be profitable this year. Shenzhen Airlines posted a profit of more than US$29 million for the first four months of the year, following a US$4.09 million profit in 2008. No firm timetable has been set for a listing, as valuations have remained weak, and the airline has been able to raise sufficient capital through bank loans. A plan to raise US$1 billion from an initial public offering by the end of last year was ultimately sidelined due to the global financial crisis and flagging domestic demand for air travel.