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Frontier Airlines is the second low-cost carrier in a month to file for an initial public offering, clearly seeing opportunity in the prevailing assumption that affordable leisure travel will rebound first from the pandemic.
Denver-based and private equity-owned, Frontier filed paperwork Monday with the Securities and Exchange Commission, stating it is looking to raise $100 million in the offering.
The filing comes on the heels of Sun Country Airlines filing for an IPO in February, a rarity within the industry but amid the growing anticipation that vaccines will encourage more flyers to book flights.
By Cirium2021-03-09T07:37:00+00:00
Frontier Airlines on 8 March filed for an initial public offering of stock with the US Securities and Exchange Commission, a year after cancelling its previous bid for a $100 million offering that it initiated in 2017.
The Denver-based leisure carrier seeks to list on Nasdaq using the ticker “FRNT”, though no pricing terms were disclosed.
Source: Max Kingsley-Jones
Joint bookrunners for the proposed offering would be Barclays, Citi, Deutsche Bank, Evercore ISI, Goldman Sachs, Morgan Stanley, JP Morgan, Nomura Securities, and UBS Investment Bank.
The ultra-low-cost carrier since 2013 has been owned by Indigo Partners, which also has ownership stakes in Wizz Air, JetSMART Airlines, Volaris and Enerjet.
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For the second time in four years, the low-cost carrier Frontier Airlines has filed for an initial public offering (IPO).
What Happened: The Denver-headquartered airliner was publicly-traded prior its to filing for bankruptcy in 2009. Republic Airways Holdings acquired Frontier for $108.8 million out of bankruptcy, and in 2013 it was sold to the private equity firm Indigo Partners for $145 million.
Frontier previously filed an S-1 seeking to raise $700 million in March 2017, but that filing remained dormant before it was withdrawn last summer.
The coronavirus pandemic made a significant dent in the airline industry and Frontier was not immune from its tumult. According to its regulatory filing, the company posted a $225 million loss in 2020 on revenue of $1.25 billion, compared with net income of $251 million on sales of $2.5 billion during 2019.