Airline Flybe plans £60 million London listing
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Companies:BRITISH AIRWAYSEurope
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irector DealingsNew Issues (IPOs)International
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7:42, Tuesday 30 November 2010
LONDON (Reuters) - Budget airline Flybe plans to raise 60 million pounds through a London initial public offering (IPO) in December, the company said on Tuesday.
Flybe said it would use half of the proceeds of the offering, which will be made up of new shares, to fund its aircraft fleet expansion, and the other half to strengthen its cash position.
"A listing will assist Flybe in achieving the next stage in its exciting strategy for growth," the airline's chief executive Jim French said in a statement.
British Airways (BABWF.PK - news) said it planned to subscribe for enough shares in the offer to maintain its existing 15 percent stake in Flybe.
Flybe acquired BA Connect, the former regional airline business of British Airways, in 2007, making it Europe (news) 's largest regional airline.
The carrier, which focuses on niche UK routes, has tried to float several times but has been forced to shelve plans because of tough market conditions.
"We are delighted to participate in the Flybe IPO," BA Chief Executive Willie Walsh said in a statement.
"We are committed to supporting Flybe in its listing and capital raising."
Bank of America Merrill Lynch is the sole global coordinator and bookrunner on the offer.