Icelandic budget start-up PLAY (Iceland) (OG, Reykjavik Keflavik) has raised ISK33.8 billion krónur (USD274 million) in fresh capital from about 4,600 subscriptions in an initial public offering (IPO) on the Nasdaq First North Growth Market Iceland, an alternative stock exchange for smaller companies in Europe, the carrier announced.

A total of 221,906,800 new shares were issued during the IPO, in two separate offer books which were different with regard to size and allocation:

  • Offer Book A: ISK 6.7 billion (USD 55 million) was raised at a fixed rate of ISK18 (USD0.14) per share;
  • Offer Book B: Structured for larger investors, it raised ISK 27 billion (USD 220 million), with a final offer rate of ISK20 (USD16) per share.

The offering was managed by financial advisors Arctica Finance and Arion Bank.

PLAY’s board of directors will now evaluate the subscriptions received in the offering and make decisions in this regard. The results of the allocation of the offering are expected to be announced at the end of today (June 28, 2021).

The final due date for payment is expected to be July 5, 2021. Subject to payment, the newly issued shares are expected to be delivered on July 9, 2021.

Trading of PLAY’s shares on Nasdaq First North is expected to commence on July 9. The first day of trading will be announced at least one business day in advance.

According to a company description published by PLAY on June 23, the listing of shares completes a financing round started in March 2021 to secure sufficient working capital for at least the first year of operation. A private placement with Arctica Finance with the goal to raise USD35 million was successfully completed in April with a total transaction of USD47 million in new equity, the company said.

As reported, having obtained its Air Operator's Certificate (AOC) from the Icelandic Transport Authority last month, PLAY made its commercial debut, from Reykjavik Keflavik to London Stansted, on June 24, and to Copenhagen Kastrup, on June 25.

PLAY plans to operate to Europe and North America using Keflavik as a hub. Its route network will initially connect Iceland to major cities and popular leisure destinations in Europe, but it plans to secure all the necessary permits to operate to the US and Canada.

Chief executive Birgir Jónsson said the carrier is now “well prepared to maximize the post-COVID opportunity" given that the Icelandic government has declared the country free of any pandemic restrictions as of midnight on June 25, 2021.