The company, which will be the sixth public airport firms in China, will float a total of 400 million A shares, raising over 2.38 billion yuan (US$288 million) for future expansion of the new Guangzhou international airport which will be completed and operational by next January.

The new airport is expected to become a new international aviation hub in the prosperous southern Chinese region, and one of the mainland's three busiest airports. The other two busiest Chinese airports are Beijing Capital International Airport and Shanghai Pudong International Airport.

Guangzhou Baiyun International Airport Co Ltd holds 51 per cent of shares in the new airport.

Cui Jianguo, general manager of Guangzhou Baiyun International Airport Co Ltd, said yesterday the money raised from the sale of A shares will fund the construction of the new airport terminal, which will be able to reach world standards.

The new airport terminal will provide more than 300,000 square metres of floor space.

Meanwhile, Guangzhou Baiyun International Airport Co Ltd is now negotiating with more overseas airlines to run more direct international flights when the new Guangzhou international airport is completed.

"Floating A shares is just the first step of financing, the airport is also seeking opportunities to be listed on the Hong Kong Stock Exchange and also in foreign countries in the following years to help strengthen Guangzhou's status as an international hub in southern China," Cui said.

A new shareholding company will be also established to help operate the new Guangzhou international airport, added Cui.

In previous years, Xiamen International Gaoji Airport, Shanghai Hongqiao Airport, Shenzhen Bao'an International Airport, Beijing Capital International Airport and Haikou Meilan International Airport have gone public in Shanghai, Shenzhen and Hong Kong respectively.

(China Daily April 11, 2003)