LONDON – Europe`s second-biggest discount airline easyJet entered the London Stock Exchange with a price tag of…
LONDON – Europe`s second-biggest discount airline easyJet entered the London Stock Exchange with a price tag of 777 million pounds ($1.11 billion).
The company priced its initial public offer at 310 pence per share, leaving room for the stock to fly in early trade on the exchange.
The initial public offer was 9-1/2 to 10 times subscribed and easyJet`s shares rose more than 11 percent on their debut in a sector where sentiment has improved with stronger than expected results recently from British Airways and low-cost rival Ryanair. easyJet`s offering raised 195 million pounds to expand its fleet of Boeing jets.
easyJet, founded in 1995 and headed by high-profile entrepreneur Stelios Haji-Ioannou, is going public to raise cash to buy 32 new planes and expand its business as the battle for European customers heats up. The airline, which operates out of Luton airport, north of London, said 63 million new ordinary shares issued for the flotation will represent approximately 25 percent of the enlarged share capital. One of the hurdles it currently faces is increased charges at its Luton base, where it has been waging a high-profile campaign against higher landing fees and the cost of the privately owned airport`s new terminal.
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