Wizz Air aims to raise €200m in London market debutThursday 22 May 2014 10.48
Hungarian low-cost airline Wizz Air said it plans to list its shares on the London Stock Exchange, seeking to raise €200m to strengthen its balance sheet.
Wizz Air, which started to fly 10 years ago, is now the largest budget airline of central and eastern Europe with a market share of 38%, the company said today.
The airline, which has a fleet of 46 Airbus planes, had revenue of €1 billion in the year to the end of March and net profit of €89m.
"We will continue to grow the business. New markets can be stimulated," chief executive Jozsef Varadi said.
He said the company plans to expand its fleet to 82 Airbus A320 planes by the end of 2017.
As well as raising money by selling new shares, the initial public offering (IPO) might enable Wizz Air to get better terms on loans to help fund growth, the CEO added.
Varadi said he wanted Wizz Air to benefit from consolidation in the sector. "We expect more consolidation in the market. It is hard to say when and where but we expect consolidation and we want to be able to act."
The airline aims to complete its share sale next month