China’s first low-cost carrier Spring Airlines（601021）has postponed its IPO, originally scheduled for December 22, to January 12 next year.
Spring Airlines announced that the preliminary enquiry for the listing has been completed and the proposed offering price will be RMB18.16 per share, which is equivalent to 22.96 times of the diluted earnings per share for 2013 and higher than the average 21.21 monthly trailing price-earnings ratio (P/E) for the air transport industry（G56）published by China Securities Index.
As the P/E is higher in this listing than the industry average, there is a risk of the share price dropping if the P/E regresses to the industry average on listing valuation. Spring Airlines has decided to delay the IPO to safeguard investors from this risk.(Translation by David)
