Aircraft leasing firm Avolon files in US for IPO

Tuesday 10 June 2014 07.24
Avolon had a fleet of about 202 aircraft
Avolon had a fleet of about 202 aircraft

Aircraft leasing company Avolon Holdings has filed with US regulators its intention to hold an initial public offering, but said it has not decided how much it planned to raise. 

JPMorgan, Morgan Stanley and Citigroup are underwriting the IPO, the company said in a preliminary prospectus filed with the US Securities and Exchange Commission. 

Dublin-based Avolon said in a statement that the number of shares to be sold and the price range had "not yet been determined." 

Avolon is backed by private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners, as well as Singapore's sovereign wealth fund. 

Reuters reported in March that Avolon, which provides aircraft leasing and lease management services to airlines and aircraft investors, was preparing for an initial public offering. 

The company's plans come as aviation draws interest from longer-term investors such as insurers and pension funds, who hope to boost weak returns dictated by low interest rates. Rival Awas Aviation Services, also headquartered in Dublin, is planning an IPO in the second half of this year. 

Avolon had a fleet of about 202 aircraft as of March 31, serving 46 customers in 27 countries. Since its launch in 2010, the company had raised about $7.5 billion in capital till the end of March. 

The company is run by Domhnal Slattery, a veteran of former industry giant Guinness Peat Aviation, which was broken up in the early 1990s after a failed IPO. Its focus is on young and fuel-efficient single-aisle aircraft made by Boeing and Airbus. It delivered a total of 34 aircraft valued at more than $2 billion last year. 

Avolon's customers include Ryanair, American Airlines, Air France KLM and India's IndiGo. 

The company's net income rose about 28% to $36.4m in the three months ended March 31. Total revenue rose about 30%to $135.76m.