Denmark's Copenhagen Airport will buy up to 20 per cent of Meilan Haikou Airport on Hainan Island ahead of its planned main-board listing, sources have said. Copenhagen Airport will buy HK$515 million in shares from Meilan's initial public offering (IPO), which has been approved. That is 20 per cent of the 440 million shares to be issued. The stake would be subject to a 12-month lock-up. Meilan, China's eighth-largest airport by passenger throughput, and Copenhagen Airport will sign a 10-year technical services agreement, under which Copenhagen Airport will help improve its Chinese partner's operations. Copenhagen Airport will appoint two directors to Meilan's board. Copenhagen Airport has stakes in or co-operation agreements with 13 other airports, but this will be its first investment in Asia. It is the fourth-largest European-listed airport operator by market capitalisation, at about US$581 million. Meilan is planning to issue 200 million H shares at a price to 2002 earnings ratio of 10 to 11. Net profit was 87 million yuan (about HK$80.9 million) last year and 77 million yuan in the first five months this year. It is expected to raise about US$100 million from the offer and list by the middle of next month. HSBC and Oriental Patron are joint sponsors of Meilan's listing. China's No 4 airline group, Hainan Airlines Group, established and operates Meilan, in which it holds a 58 per cent stake. Meanwhile, CNOOC Services, which provides oil logistics support services to CNOOC, has also received approval to list on the main board. It is expected to start pre-marketing next month.