Spirit Reaps $187.2 Million in IPO 42% Smaller Than Planned
Spirit Airlines Inc. raised $187.2 million, 42 percent less than it originally sought, after the U.S. discount carrier cut the price and number of shares in its initial public offering.
The Miramar, Florida-based airline sold 15.6 million shares at $12 each, according to data compiled by Bloomberg. Spirit initially planned to raise as much as $320 million, according to a regulatory filing, before shrinking its offering from 20 million shares and lowering the range to $12 to $13 from a band of $14 to $16.
Spirit, which flies mostly between Florida and the Caribbean, had said it would use the funds for future plane purchases and to pay off debt. It is going public as jet fuel hovers near a three-year high, crimping industry profits and forcing carriers to raise fares.
The shares will trade on the Nasdaq Stock Market under the symbol SAVE. Gulfstream International Group Inc. (GIGIQ) was the last U.S. passenger airline to hold an IPO, selling shares in 2007 and filing for bankruptcy last year.
Private equity firm Indigo Partners LLC bought a majority stake in Spirit in 2006, and also invests in similar low-fare carriers outside the U.S., including Mexico’s Volaris. Oaktree Capital Management LP is the second-biggest investor.