Jeju Air, the country’s No.1 budget carrier, is planning an initial public offering of its shares in the first half of 2015, industry sources said Monday.

If successful, Jeju Air ― controlled by Aekyung Group ― would become the first local low-cost carrier to be listed on the stock market.

Aekyung Group, a conglomerate whose businesses range from daily necessities and chemicals to department stores, is hoping to raise up to 200 billion won ($178.9 million) from the IPO, according to sources.

“We expect Jeju Air to be listed in April or May next year after it applies for the IPO in March,” a Jeju Air official said.

Aekyung Group tapped Woori Investment & Securities to act as the lead underwriter for the offering.

The group plans to carry out the listing of its low-cost carrier unit by floating new shares and selling part of existing shares held by the budget carrier’s main shareholders, industry sources said.

Aekyung Group, along with the group’s holding firm AK Holdings and retail subsidiary Aekyung, owns an 86.23 percent stake in the airliner.

Established in 2005, Jeju Air suffered losses for its first six years before posting a turnaround in 2011.

Since then the airliner has been recording an operating profit, as more Koreans are opting to use low-cost airlines to cut costs. Having Jejudo Island as its home base has also helped, as the island is now a top attraction for tourists from China and Southeast Asia.

In total, the budget carrier’s accumulated sales this year are estimated to reach 378 billion won, with net profit reaching 22.6 billion won.

Buoyed by the success, the carrier has expanded its routes both at home and abroad over the past five years, with overseas routes including China, Thailand and Japan.

By Park Han-na (hnpark@heraldcorp.com)