Air China Cargo Co Ltd, the airfreight subsidiary of State-owned Air China Group, debuted on the Shenzhen Stock Exchange on Monday and became the biggest IPO of the A-share market this year.

The share price of Air China Cargo surged 304.35 percent from its issuing price of 2.3 yuan ($0.32) per share to close at 9.3 yuan, giving the company a market valuation of 111.7 billion yuan.

The Beijing-headquartered company is expected to raise an amount of nearly 3.5 billion yuan through the listing. The fund will be used for introducing new aircraft and backup aircraft engines, as well as the improvement of comprehensive logistics capacity, and the building of information and digital projects, according to its prospectus.

As China's only flag-carrying cargo airline, Air China Cargo has been focusing on the development of three major business segments, which are air cargo, integrated logistics and cargo terminal services, said Yan Fei, president of Air China Cargo.

"The successful listing of Air China Cargo provides the company with a bigger stage and more opportunities. We will further build new quality productive forces, improve the resource allocation and service capabilities of the entire aviation logistics chain, and deeply integrate ourselves into the global industry chain and supply chain," Yan said.

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