Flybe valued at £215m on float

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 Birmingham International Airport and Manchester Airport, said conditional dealings were expected today and the group intended to float 20.3m shares, representing 28% of the issued share capital.

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, Rosedale Aviation Holdings will hold approximately 49.6% of the shares, which are subject to lock-in arrangements.

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 codeshare 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.