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Low-cost carrier Frontier aims for $4.52 billion valuation in U.S. IPO

Published 03/23/2021, 07:49 AM
Updated 03/23/2021, 08:10 AM
© Reuters. FILE PHOTO: A Frontier Airlines Airbus A320neo plane departs from O'Hare International Airport in Chicago

(Reuters) - Frontier Group is aiming for a valuation of $4.52 billion in its U.S. initial public offering (IPO), according to a regulatory filing by the low-cost carrier on Tuesday, as the industry prepares for a rebound from pandemic-driven travel lows.

U.S. airlines are beginning to emerge from the pandemic-induced crisis that has opened doors for carriers catering to domestic leisure travel, which is rebounding quicker than business and international travel, particularly as more people receive COVID-19 vaccines.

Budget carriers are also expected to bounce back quicker than larger rivals, thanks to their lower-cost structures and focus on domestic leisure travel.

Frontier, which withdrew listing plans in July, filed again this month, while Apollo Global Management-backed Sun Country Airlines made its successful stock market debut.

Frontier plans to sell 30 million shares priced between $19 and $21 per share, aiming to raise about $630 million.

Denver, Colorado-based Frontier, which is owned by private equity firm Indigo Partners, flies to more than 100 destinations in the United States, Mexico and the Caribbean and operates 100-plus Airbus A320 family aircrafts.

Citigroup (NYSE:C), Barclays (LON:BARC), Deutsche Bank (DE:DBKGn) Securities, Morgan Stanley (NYSE:MS) and Evercore ISI are the lead underwriters for Frontier's offering.

© Reuters. FILE PHOTO: A Frontier Airlines Airbus A320neo plane departs from O'Hare International Airport in Chicago

Frontier will list its stock on the Nasdaq under the symbol "ULCC".

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