Irish aircraft lessor Avolon files in US for IPO

Dublin-based company said the number of shares to be sold had ‘not yet been determined’

Ray Conner, president and chief executive officer of Boeing Commercial Airplanes, with Domhnal Slattery, chief executive officer of Avolon Leasing Group. Photo: Bloomberg
Ray Conner, president and chief executive officer of Boeing Commercial Airplanes, with Domhnal Slattery, chief executive officer of Avolon Leasing Group. Photo: Bloomberg

Irish aircraft leasing company Avolon Holdings has filed with US regulators to hold an initial public offering.

JPMorgan, Morgan Stanley and Citigroup are underwriting the IPO, the company said in a preliminary prospectus filed with the US Securities and Exchange Commission.

Dublin-based Avolon said in a statement that the number of shares to be sold and the price range had “not yet been determined.”

Avolon is backed by private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners, as well as Singapore’s sovereign wealth fund.

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Avolon’s listing plans come as aviation draws interest from longer-term investors such as insurers and pension funds, who hope to boost weak returns dictated by low interest rates.

Rival Awas Aviation Services, also headquartered in Dublin, is planning an IPO in the second half of this year.

Avolon had a fleet of about 202 aircraft as of March 31, serving 46 customers in 27 countries. Since its launch in 2010, the company had raised about $7.5 billion in capital till the end of March.

The company is run by Domhnal Slattery, a veteran of former industry giant Guinness Peat Aviation, which was broken up in the early 1990s after a failed IPO.

Its focus is on young and fuel-efficient single-aisle aircraft made by Boeing and Airbus Group. It delivered a total of 34 aircraft valued at more than $2 billion last year.

Avolon's customers include American Airlines, Air France KLM, Ryanair and India's IndiGo.

The company’s net income rose about 28 per cent to $36.4 million in the three months ended March 31. Total revenue rose about 30 percent to $135.76 million.

Avolon said it would list its shares under the symbol “AVOL”, but did not specify which exchange it would list on.

Reuters