Wizz Air plans to raise EUR 200 mln via London exchange IPO

Hungarian low-cost airline Wizz Air is planning an Initial Public Offering (IPO) aiming to raise EUR 200 million by listing shares on the London Stock Exchange.

Since beginning a decade ago, Wizz Air, which also operates in Romania, has become the largest low-cost carrier in central and eastern Europe, with a market share of 38 percent.

In a statement, Wizz Air said the IPO would strengthen the company’s balance sheet and provide flexibility in its growth strategy which included: increasing frequencies on existing routes; increasing the density of its network; flying to new destinations in its existing markets; and, flying to new destinations in new markets many of which have historically been underserved by low-cost carriers, including in the Middle East and Caucasus.

It also aims to further exploit and grow its core business of connecting eastern and central Europe with Western Europe.

“We look forward to building on our success to date as we leverage opportunities both in our current markets, new markets in the Central and Eastern European region and further East, many of which have significantly higher GDP growth forecasts than the rest of Western Europe and whose propensity to travel by air can be stimulated and driven by the low air-fares we offer,” Wizz Air CEO József Váradi said in a statement.

Currently, its network spans 35 countries, includes 17 bases and encompasses 96 destinations over 315 routes.

The company plans to increase its fleet of 50 A320 airbuses to 82 by the end of 2017.

In the 2014 financial year, Wizz Air carried 13.9 million passengers and reached an annual compound growth rate of 14 percent in passenger volumes.

In the same period, the company’s revenue grew 19 percent to EUR 1.012 billion. It’s average ticket revenue per passenger was EUR 47.3.

The London listing is being run by Barclays, Citigroup and JP Morgan with Nomura International as lead manager.

Shaun Turton [email protected]

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Wizz Air plans to raise EUR 200 mln via London exchange IPO

Hungarian low-cost airline Wizz Air is planning an Initial Public Offering (IPO) aiming to raise EUR 200 million by listing shares on the London Stock Exchange.

Since beginning a decade ago, Wizz Air, which also operates in Romania, has become the largest low-cost carrier in central and eastern Europe, with a market share of 38 percent.

In a statement, Wizz Air said the IPO would strengthen the company’s balance sheet and provide flexibility in its growth strategy which included: increasing frequencies on existing routes; increasing the density of its network; flying to new destinations in its existing markets; and, flying to new destinations in new markets many of which have historically been underserved by low-cost carriers, including in the Middle East and Caucasus.

It also aims to further exploit and grow its core business of connecting eastern and central Europe with Western Europe.

“We look forward to building on our success to date as we leverage opportunities both in our current markets, new markets in the Central and Eastern European region and further East, many of which have significantly higher GDP growth forecasts than the rest of Western Europe and whose propensity to travel by air can be stimulated and driven by the low air-fares we offer,” Wizz Air CEO József Váradi said in a statement.

Currently, its network spans 35 countries, includes 17 bases and encompasses 96 destinations over 315 routes.

The company plans to increase its fleet of 50 A320 airbuses to 82 by the end of 2017.

In the 2014 financial year, Wizz Air carried 13.9 million passengers and reached an annual compound growth rate of 14 percent in passenger volumes.

In the same period, the company’s revenue grew 19 percent to EUR 1.012 billion. It’s average ticket revenue per passenger was EUR 47.3.

The London listing is being run by Barclays, Citigroup and JP Morgan with Nomura International as lead manager.

Shaun Turton [email protected]

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