Wizz Air resurrects London flotation plan

Low-cost airline is seeking to raise €150 million to help fund its growth plans

Low-cost Eastern European-focused airline Wizz Air has resurrected a plan to list its shares on the London Stock Exchange, seeking to raise €150 million.
Low-cost Eastern European-focused airline Wizz Air has resurrected a plan to list its shares on the London Stock Exchange, seeking to raise €150 million.

Low-cost Eastern European-focused airline Wizz Air resurrected a plan to list its shares on the London Stock Exchange, seeking to raise €150 million to help fund its growth plans.

The proceeds sought compares to the €200 million it said it was aiming for last year, before it shelved the plans in June citing market volatility in the airline business.

Wizz, whose no-frills rivals include Ryanair and EasyJet, said it aimed to complete the listing in the first quarter but gave no detail on the number of shares it plans to sell or at what price.

The firm said its opportunities for continued growth would come as more people in the Central and Eastern European region start to travel by air, noting that low-cost airline penetration of that area was lower than in western Europe.

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The airline, which has plans to grow its Airbus fleet to 85 in 2017 from a current level of 54, had revenue of €1 billion in the fiscal year through to March 2014 and net profit of €89 million - nearly tripling its level of the previous year.

The carrier, which is headquartered in Hungary, said its global offer would comprise the sale of both new shares and those sold by existing investors and that it expected existing investors to agree to a lock-up period.

At the time the IPO was postponed last year, sources told Reuters the company was unable to reach the £500 million valuation it was hoping for.

It said the proceeds from the offer would be used to help strengthen its balance sheet and fund growth plans including taking advantage of any expansion opportunities.

Reuters