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A VERY PUBLIC AFFAIR
01 April 2007
Last year was a good 12 months for operating lessor initial public offerings, but several airlines also tapped the capital markets for funding. Natasha Yazdabadi reports on airlines that have opened up in the past year.
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Air Arabia; Jazeera
Anyone who thought that investor sentiment in the Middle East was waning in the face of ongoing political and cultural turmoil is in for a surprise. Those in doubt need look no further than Air Arabia, the low-cost carrier of the Middle East and North Africa, which is changing widely held beliefs that the low-cost carrier market in the Middle East would never emerge.
Air Arabia issued a Dh2.5 billion ($681 million) initial public offering (IPO) on March 18. The IPO was open to both United Arab Emirates (UAE) and non-UAE nationals, including individual and institutional investors. The 10-day IPO raised xxxxxx for the airline.
Dubai-based Air Arabia issued 2,566,700,000 shares valued at Dh2.57 billion, representing 55% of the company's share capital. The IPO attracted about 40,000 subscribers and was covered by approximately 150%.
Air Arabia intends using the proceeds to increase its fleet of nine aircraft to 34 in 2016. Dubai's Shuaa...
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