CEO one to one: Jozsef Varadi, CEO of Wizz Air @ #WTM14 - Tues 4 Nov
Wizz Air Sets London IPO Price
Wizz Air said its London initial public offering had been priced at GBP£11.50 per share, giving the company a notional market value of GBP£601 million (USD$932 million).
The airline, which operates mainly in Eastern Europe, said it would receive net proceeds of about GBP£103 million (USD$160 million) from the IPO.
The money raised will help Wizz Air compete with larger rivals Ryanair and easyJet.
The no-frills Hungarian airline pulled plans for an IPO last June, citing market volatility in the airline industry.
Wizz Air, which started operations in 2003, has sharply increased its capacity since 2012 when years of losses forced Hungarian national carrier Malev into bankruptcy.
"Wizz Air represents an attractive opportunity reflecting the compelling growth dynamics in the Central and Eastern European air travel markets," chief executive JÃ³zsef VÃ¡radi said on Wednesday.
VÃ¡radi said he expected a combination of deregulation, above-average GDP growth and a growing middle class to drive air travel in the region, particularly for low-cost carriers.
Selling shareholders, comprising senior management, employees, ex-employees and other investors, will receive net proceeds of about GBP£154 million from the IPO.
US private equity firm Indigo Partners, the airline's biggest investor, will retain a 19.6 percent stake unless over-allotment options are exercised, the company said.