Spring Airlines will become the first private Chinese carrier to float on the Shanghai Stock Exchange (SSE).
The Shanghai-based low-cost airline has obtained approval from the China Securities Regulatory Commission (CSRC) to hold an initial public offering (IPO).
It now plans to offer no more than 100 million shares, generating an estimated CNY2.53 billion (US$409m). Spring will use the proceeds to fund its expansion plans, including the purchase of nine more Airbus A320 aircraft and three aircraft simulators.
Spring will become the fifth Chinese airline to go public on the SSE, following state-owned China Eastern Airlines, China Southern Airlines, Air China and Hainan Airlines, which is part owned by Hainan province.
The LCC recorded net profits of CNY483m, CNY625m, CNY732m and CNY270m for the last three years and the first half of 2014 respectively, and expects to carry 12m passengers this year.
Spring currently operates a fleet of 46 A320s, but plans to grow to 100 jets by the end of 2018.