Ipo news
03-09-2021, 07:59 AM
#21
Gets Weekends Off
Joined APC: Jul 2018
Posts: 482
Originally Posted by Powderkeg
Apparently I wasn’t clear in a previous post...to put it more bluntly, you’re crazy. If anybody was going to buy F9 the time to do so would be when there wasn’t a public ownership hurdle to overcome. And the main reason owners IPO rather than make a private sale is they don’t get the valuation they want when shopping for buyers. So (big) IF G4 was interested in buying F9 they couldn’t come up with the scratch that Indigo wants.
03-09-2021, 08:01 AM
#22
Gets Weekends Off
Joined APC: Dec 2016
Posts: 664
Originally Posted by BiffleBalls
He just trolls along hoping to get someone to bite in the F9 forums. Apparently the margaritas aren't working anymore...
03-09-2021, 10:52 AM
#26
Gets Weekends Off
Joined APC: Aug 2020
Position: A320 CA
Posts: 647
Originally Posted by EAFF95
Respectfully, as of Q4 2020 Allegiant had $152.8m in cash compared to Frontiers $378m. We both have access to revolving credit from the government that remains undrawn and Frontier's S-1 omits short/long term investments. However, I doubt either airline is in a position to make a move without an influx of cash from another source.
Personally, I don't think the business models mash up well. Allegiant prefers well loved airplanes on underserviced routes with low frequency whereas we are utilizing new airplanes working frequently out of some of the biggest hubs in America. The only thing we have in common are the aircraft type and fare structure.
Personally, I don't think the business models mash up well. Allegiant prefers well loved airplanes on underserviced routes with low frequency whereas we are utilizing new airplanes working frequently out of some of the biggest hubs in America. The only thing we have in common are the aircraft type and fare structure.
G4 has over 80% of its routes as non-competitive (not just ULCC non-competitive, but non-competitive period). F9 is not afraid to take on other airlines and compete based solely on price in primary markets, G4 avoids that competition. Not to say one is better than the other, you'd be a moron to doubt Indigo. And G4 consistently has some of the highest operating margins in the industry.
If G4 wanted to acquire F9 they should have done it a decade ago, pre-Indigo. I think margarita got the $750m cash from the cash and cash equivalents in as of end of Q4 which were $685m ($152.8m cash and $532.5m short term investments). Either way, its a lot of cash to be sitting on (especially with the gov cheese continuing to flow) but not enough to seriously make a run at F9.
I for one am curious to see how the F9 IPO plays out; Indigo has to be looking at G4 and NK stock soaring and believe that the timing is good.
03-09-2021, 11:50 AM
#27
Gets Weekends Off
Joined APC: Mar 2015
Posts: 514
Originally Posted by Powderkeg
This part of “we” hasn’t forgotten anything but there aren’t many pilots with whom I’d trade places today.
03-10-2021, 03:55 AM
#29
Bus Driver ordinarie
Joined APC: Aug 2015
Position: Airbus CA
Posts: 555
Originally Posted by Excargodog
An NK merger would bring with it a non-trivial economy of scale.
Also. Not gonna happen. An IPO is not a for sale sign. It's an offer of equity growth for investors. Indigo are very unlikely to surrender any form of meaningful control.
03-10-2021, 06:13 AM
#30
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Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,394
I agree with the above.
But again, the critical thing that we don't yet know is, how much of the company are they offering up to the public?
If they are only going to offer up 20 or 30%, I think it's safe to assume that they are just raising capital and plan on keeping their hold on the company. But if they IPO a significant chunk of the business, I think it's more likely that they are planning an exit.
They also might just be raising enough capital to pay back loans they took. Im pretty sure Frontier took a couple hundred million in loans from the Gov't in addition to the grant money that didn't have to be paid back. This IPO might be a way for them to pay off those debts workout having to reach into their own pockets.
I don't know if there is a planned merger or acquisition, but this IPO certainly is no guarantee of anything. And lastly, I think the timing is right. Airline stocks are likely to rise sharply during the recovery
But again, the critical thing that we don't yet know is, how much of the company are they offering up to the public?
If they are only going to offer up 20 or 30%, I think it's safe to assume that they are just raising capital and plan on keeping their hold on the company. But if they IPO a significant chunk of the business, I think it's more likely that they are planning an exit.
They also might just be raising enough capital to pay back loans they took. Im pretty sure Frontier took a couple hundred million in loans from the Gov't in addition to the grant money that didn't have to be paid back. This IPO might be a way for them to pay off those debts workout having to reach into their own pockets.
I don't know if there is a planned merger or acquisition, but this IPO certainly is no guarantee of anything. And lastly, I think the timing is right. Airline stocks are likely to rise sharply during the recovery
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