Spirit Airlines prices IPO at $12, raising $171M
What's the deal? Spirit AirlinesDealroom has a profile for this one. Try Dealroom → priced its initial public offering at $12.00 per share, selling 15,600,000 shares of common stock to raise approximately $171 million after fees. The ultra-low-fare carrier, based in Fort Lauderdale/Hollywood, begins trading on the NASDAQ Global Select Market under the symbol "SAVE."
Why now? The $12.00 price landed on the low end of the expected range, a sign of cautious investor appetite. Spirit's registration statement was declared effective by the US Securities and Exchange Commission on May 25, 2011, clearing the way for the debut.
Who's involved? Citi and Morgan Stanley acted as joint bookrunners. Barclays CapitalDealroom has a profile for this one. Try Dealroom →, Raymond James, and Dahlman Rose & Company served as co-managers. Selling stockholders granted underwriters a 30-day option to buy up to 2,340,000 additional shares to cover overallotments.
What's the endgame? The listing converts Spirit from a privately held company into a public one, giving it access to capital markets as it builds out its ultra-low-fare model in the US domestic market.
The signal: Pricing at the bottom of the range shows investors remain wary of discount carriers, even as the budget model gains ground. Spirit's move onto public markets will test whether the ultra-low-fare approach can win over Wall Street as well as passengers.
Read more: worldairlinenews.com
Image credit: TDelCoro
