Blue Air targets GBP 500 mln ex-post valuation upon LSE listing

Blue Air, the largest Romanian airline, plans to be listed on the London Stock Exchange (LSE) "in autumn" with a valuation of up to GBP 500 mln (EUR 584 mln), hoping to replicate the success story of Wizz Air over the last decade, according to The Times.

This is sooner than previously implied by the company's management.

The airline will list its shares at LSE by reverse takeover (RTO) early next year, will issue bonds at Bucharest Stock Exchange (BVB) later in the year, and will end the FY 2022 in the black, company's CEO Oana Petrescu told local media several days earlier.

"The listing will take place at the beginning of next year. We have six months to meet all the requirements and the due-diligence process and attract some pre-IPO funds, and afterwards, the target [for the listing] is the beginning of next year, Oana Petrescu, CEO of Blue Air, told Economica.net.

The company is hoping to raise up to EUR 250 mln initially through the issue of convertible bonds and then via new shares to help it expand from its fleet of 15 aircraft to about 50 within five years, operating only Boeing 737 Max aircraft, the Times explains without providing any calendar, though.

The beleaguered short-haul single-aisle plane has been touted as a "gamechanger" by Ryanair's Michael O'Leary because of its fuel efficiency, the British daily explains.

The company is 100% owned by Cristian Rada, a pilot, entrepreneur and real estate investor. Analysts expect Rada to remain the majority shareholder following the listing.

(Photo: Nikolay Bychkov/ Dreamstime)