The share price of Pegasus Airlines, the low cost air carrier of Turkey, rose during their stock market initial offer on Friday. The valuation would be worth more than US$1 billion in a transaction being closely monitored both by peers and competitors alike.
At 705 GMT, shares traded were valued at 18.9 lira which places the value of the airline at 1.93 billion lira or US$1.07 billion. The total volume of shares is 35.4% stake in the airline, initially pegged at 18.4 lira per share. The price was equivalent to 6.3 times 2013 the airline's operational earnings. This is a lower price compared to the 8.1 average multiplier used by other low cost carriers, namely EasyJet and Ryanair.
The share sale is managed by Barclays and the proceeds would be utilized to expand the operations of the budget air carrier. Investor spread was quite wide, with nearly half of the shares were purchased from United Kingdom investors, 35% from US investors and the remaining 15% went to continental Europe investors.
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