Irish aircraft lessor Avolon files in U.S. for IPO

Mon Jun 9, 2014 7:21pm EDT

(Reuters) - Aircraft leasing company Avolon Holdings Ltd filed with U.S. regulators on Monday to hold an initial public offering, but said it has not decided how much it planned to raise.

JPMorgan (JPM.N), Morgan Stanley (MS.N) and Citigroup (C.N) are underwriting the IPO, the company said in a preliminary prospectus filed with the U.S Securities and Exchange Commission. (r.reuters.com/kuc99v)

Dublin-based Avolon said in a statement that the number of shares to be sold and the price range had "not yet been determined."

Avolon is backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd and Oak Hill Capital Partners, as well as Singapore's sovereign wealth fund.

Selling shareholders are offering all the shares. Reuters reported in March that Avolon, which provides aircraft leasing and lease management services to airlines and aircraft investors, was preparing for an initial public offering.

Avolon's listing plans come as aviation draws interest from longer-term investors such as insurers and pension funds, who hope to boost weak returns dictated by low interest rates.

Rival Awas Aviation Services Inc [AWASA.UL], also headquartered in Dublin, is planning an IPO in the second half of this year.

Avolon had a fleet of about 202 aircraft as of March 31, serving 46 customers in 27 countries. Since its launch in 2010, the company had raised about $7.5 billion in capital till the end of March.

The company is run by Domhnal Slattery, a veteran of former industry giant Guinness Peat Aviation, which was broken up in the early 1990s after a failed IPO.

Its focus is on young and fuel-efficient single-aisle aircraft made by Boeing Co (BA.N) and Airbus Group NV (AIR.PA). It delivered a total of 34 aircraft valued at more than $2 billion last year.

Avolon's customers include American Airlines Group Inc (AAL.O), Air France KLM SA (AIRF.PA), Ryanair Holdings Plc (RYA.I) and India's IndiGo.The company's net income rose about 28 percent to $36.4 million in the three months ended March 31. Total revenue rose about 30 percent to $135.76 million.

Avolon said it would list its shares under the symbol "AVOL", but did not specify which exchange it would list on.

The registration referred to a possible listing of $100 million, but added that this was "solely for purpose of calculating SEC registration fees.

(Reporting by Avik Das in Bangalore and Conor Humphries in Dublin; Editing by Savio D'Souza and Leslie Adler)