The operator of Mexican budget airline Volaris, Volaris Aviation Holding Co., has filed documentation with US regulatory authorities to seek approval for an initial public offer of American Depositary Shares expected to be worth of US$100 million.
The IPO underwriters are Deutsche Bank Securities, Morgan Stanley Bank and UBS Investment Bank. This information was contained in a preliminary prospectus filed with the US Securities and Exchange Commission.
The prospectus; however, did not mention the volume of shares planned to be sold in the IPO or the price range for the shares.
According to the company, the net proceeds of the IPO would be used to pay off outstanding loans as well as for payments for the pre-delivered aircraft to the company.
Volaris operates 43 Airbus A320 aircraft and has 220 daily flights to thirty different cities in Mexico and ten in the United States. The company is backed up by private equity firms and has intentions to list its American Depositary Shares at the New York Stock Exchange under the symbol 'VLRS'.
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