Spring Airlines seeks approval for CNY3.5b private share placement

Spring Airlines has moved ahead with plans to raise CNY3.5b ($540m) from a private placement of shares, and China’s securities regulator has accepted its application for the issuance. The airline says in a Shanghai Stock Exchange filing dated 26 August: “The China Securities Regulatory Commission reviewed the application materials [submitted by Spring Airlines] for the non-public issuance of shares… and determined that [these] are complete and conform to statutory requirements and decided to accept the application.” It states there is no certainty the commission will give its approval and the company will provide timely updates on the process. Spring Airlines’ board greenlighted the fundraising at a 4 June meeting and the approval is valid for 12 months. Of the gross proceeds, CNY2.44b will go towards the acquisition of nine Airbus A320-family jets, which requires CNY6.69b funding in total.<br/>