Wizz Air scraps its London flotation plansMonday 16 June 2014 10.39
Wizz Air, central eastern Europe's largest airline, today abandoned its plans for an initial public offering, citing current market volatility in the airline sector.
The budget carrier said in May it planned to list its shares on the London Stock Exchange, seeking to raise €200m to strengthen its balance sheet as it seeks to fund more growth.
"The outlook for Wizz Air's business remains extremely positive and unaffected by the decision not to proceed with an IPO; the board will continue to focus on executing its strategy of driving growth and value," the company said in its statement.
Wizz Air, which started to fly 10 years ago, is the largest budget airline of central and eastern Europe with a market share of 38%.
It manages to make money while traditional local airlines have struggled or have gone bust in recent years.
Wizz Air's flotation had come amid a surge of IPOs, but it is not the only business to scrap plans. Clothes retailer FatFace also pulled its listing in May.
Airline stocks were hammered last week after German carrier Lufthansa cut profit targets for the next two years, citing competition from Middle East and low-cost rivals.
Wizz competes with no-frills rivals include Ryanair and EasyJet. Shares in easyJet have slumped 9% over the past week while Ryanair's are about 7% lower over the same period.