(Yicai Global) Feb. 13 -- Eastern Air Logistics, a unit under China's second-biggest airline, China Eastern, is undergoing pre-listing tutoring as it eyes an initial public offering in Shanghai to accelerate its parent's mixed-ownership reform.

The Shanghai-based firm, which brought in its first outside investors in 2017, plans to list on the main board of the Shanghai Stock Exchange this year, according to a notice on the local securities watchdog website. China International Capital agreed to help prepare the company for listing in January this year, it added.

China's three biggest airlines, which also include China Southern and Air China, have all been looking to speed up their mixed-ownership reforms, particularly at their logistics arms. Air China aims to bring in external investors and employee shareholding schemes this year, Yicai Global discovered at the firm's annual meeting before the Chinese New Year, a week-long national holiday which ended on Feb. 9.

Eastern Air Logistics, formerly China Cargo Airlines, was formed in 2012 using the latter's resources to build a high-end brand for air logistics and ground services.

Its parent more than halved its stake in the company in June 2017, when it sold a 25 percent share to Legend Holdings, 10 percent to Global Logistic Properties, 5 percent each to Deppon Logistics and Greenland Financial Investment, and 10 percent to representatives of Eastern Air Logistics' core shareholding employees.

The staffers indirectly hold the underlying shares through a specially established limited partnership. 125 workers bought the shares in 2017, with the general manager holding less than 1 percent stake for his CNY30 million (USD4.4 million) of stock.

Under employee shareholding rules, the staff investors must hold the stock for at least 36 months from the date of payment, and if Eastern Air Logistics goes public, they must hold them for at least 36 months from the date of the IPO.

Editor: James Boynton