Frontier Airlines’ parent, Frontier Group Holdings, was valued at $ 4 billion, as its shares were 2 percent below its offering price in the low-cost carrier’s market on Thursday.
The stock opened at $ 18.61, compared to the offer price of $ 19.6, which was at the lower end of its $ 19 to $ 21% range. The company sold 30 million shares in its initial public offering, raising $ 570 million.
It plans to use part of the proceeds to repay some $ 150 million of government loans taken under the COVID-19 relief package.
As listings begin to emerge from an epidemic-induced crisis in American airlines, domestic leisure travel-focused carriers such as Frontier have designed to benefit from a quick rebound thanks to the rollout of COVID-19 vaccines.
Sun Country Airlines, another budget carrier backed by Apollo Global Management, stepped into the market earlier this month.
Denver, Colorado-based Frontier, owned by private equity firm Indigo Partners, turned cash flow positive in early March, chief executive Barry Biffle told Reuters.
The airline flies to more than 100 destinations in the United States, Mexico and the Caribbean and operates more than 100 Airbus A320 family aircraft.
It catered to staff furloughs during the epidemic and pilots and flight attendants were among the first to announce fares.
Citigroup, Barclays, Deutsche Bank Securities, Morgan Stanley and Evercore ISI are the underwriters for the offering.
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