Flybe ready for Market take-off
FLYBE, Europe’s largest regional airline, has set an initial float price of 295p per share valuing the company at £215m.
The airline, the largest in terms of traffic movement at both Manchester and Birmingham airports, said conditional dealings were expected today and the group intended to float 20.3 million shares, representing 28% of the issued share capital.
Manchester corporate finance firm Rickitt Mitchell is part of Flybe’s adviosry team.
Flybe intends to use 50% of the net proceeds to provide it with capital to assist in funding its aircraft fleet expansion programme, and 50% further strengthen its cash position.
At admission, Flybe’s directors will hold approximately 7% of the company’s Ordinary Shares, most of which are subject to various lock-in arrangements, as described in the prospectus.
The airline wants to take advantage of growth opportunities included the expansion of code-share arrangements, strategic arrangements with other European airlines and targeted acquisitions – should these present themselves.
There has been speculation about the flotation for some time with many observers believing the company opted to delay its plans until the European airline industry recovered from recession.
