UPDATE 1-Turkey's Pegasus Airlines eyes mid-April IPO -sources

Fri Mar 29, 2013 5:52am EDT

* Offering will help fund expansion

* Most of shares seen going to foreign investors

* Pegasus ordered 100 Airbus aircraft in December

ANKARA, March 29 (Reuters) - Turkish low-cost airline Pegasus Airlines aims to launch an initial public offering of around a third of the company in mid-April with most of the shares to be allocated to foreign investors, sources close to the deal told Reuters.

The Istanbul-based carrier said last week the offering, managed by Barclays and Is Yatirim, would help fund its expansion, increasing its capital to 102 million lira ($57 million) from 75 million.

The sources said 65-80 percent of the offer would be made to foreign investors. The sale will leave the airline with a free float of 31.4 percent, increasing to 34.3 percent if an over-allotment option is exercised, according to stock exchange data.

Pegasus - part of Esas Holding, which is also active in the food, healthcare and retail sectors - postponed a previous planned offering in 2011 due to poor market conditions.

The budget airline signed the second biggest aircraft deal in Turkish aviation history last December, ordering 100 Airbus aircraft with a list price of $7.5 billion.

Founded in 1990, and bought by Esas Holding in 2005, Pegasus has increased its fleet from just two aircraft to more than 40 mostly Boeing 737-800s over the past two decades.

The company posted a net profit of 126 million liras in 2012, and carried 13.6 million passengers. It serves 70 destinations in 26 countries.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.