The company is to raise up to 20.8 billion won ($18.51 million), with the price per share being set at between 3,600 won and 4,000 won.

"Through this listing, we will strive to go beyond our current base and strive to become a key carrier," CEO Han Tae-geun said in a press briefing.

Air Busan, headquartered in the southern port city of Busan, has developed based on the strong loyalty by the people in the region, with some 40 percent of users of Gimhae International Airport taking flights operated by Air Busan, according to corporate data.

Pointing to a growing demand by Chinese visitors and the state plan of expanding the Gimhae airport, the chairman stressed "ample chances and momentum for the company to grow further down the road."

"We will also use the funds raised by the IPO to buy two more airplanes next year so as to diversify routes," Han noted.

Mirae Asset Daewoo Co., NH Investment & Securities Co. and BNK Securities Co. are lead managers in the listing.

Established in 2007, Air Busan is a budget unit of Asiana Airlines Inc., the country's second-biggest full-service carrier.

Last year, Air Busan reported a net profit of 28.5 billion won on sales of 561.7 billion won. (Yonhap)