Wizz Air (W6, Budapest) has revived its plans to go public via an IPO on the London Stock Exchange with an offering set for later this quarter. The Eastern European LCC is looking to exploit a sudden surge in airline stocks brought on by the recent drop in global oil prices.
"We believe that Wizz Air represents an attractive opportunity to invest in the expected growth in the Central and Eastern European air travel markets where a combination of deregulation, above average GDP growth, a growing middle class and supportive migration trends in an area with a large population is expected to drive higher propensity to air travel and higher LCC penetration,” Chief Executive Jozsef Varadi said.
In its investor's prospectus seen by ch-aviation, the Eastern European LCC said it was aiming to raise approximately EUR150 million (USD168 million) from the sale of a 20% stake. Proceeds raised will be used to fund its future growth plans, the acquisition of 57 Airbus A320-family aircraft and parts, and other general corporate expenses.
Its previous attempt at an IPO in June last year was abandoned citing market volatility in the airline sector at the time.
Established in September 2003, Wizz Air operates fifty-two A320-200s on flights from 20 bases located in 10 Central and Eastern European countries with flights to 106 destinations in 37 countries. The carrier is reportedly looking to operate its first A321-200s, due later this year, in a 230-seat high-density configuration.
