Frontier Airlines Prices IPO at the Low End of Range to Raise $570 Million, Valued at $4 Billion
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Frontier Group Holdings Inc., the parent company of the budget carrier Frontier Airlines, priced its shares at $19 apiece to raise $570 million in its IPO.
This way, the company sold shares at the low end of a marketed range ($19 - $21). Both the company and existing shareholders offered 15 million shares each at $19 per share. The budget carrier is valued at around $4 billion.
Frontier is hoping to capitalize on the rapid vaccination activity that is taking place in the United States these days.
“We plan to strategically deploy our capacity where demand is highest during the recovery,” the filing said.
“More broadly, after being restricted from travel, we believe many customers will take advantage of the opportunity to travel more in the coming years.”
The underwriters have a 30-day option to buy an additional 4.5 million shares.
Frontier will start trading on the Nasdaq stock market under the ticker symbol ULCC, which stands for “ultra-low-cost carrier.”
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