docav8tor

Low-cost airline Frontier Group Holdings sets terms for $600 million IPO

Frontier Group Holdings, an ultra low-cost US airline carrier that serves approximately 110 airports, announced terms for its IPO on Tuesday.

The Denver, CO-based company plans to raise $600 million by offering 30 million shares (50% insider) at a price range of $19 to $21. At the midpoint of the proposed range, Frontier Group Holdings would command a fully diluted market value of $4.5 billion.

Frontier is an ultra low-cost carrier that offers flights throughout the US and to select near international destinations in the Americas. As of December 31, 2020, the company had a fleet of 104 narrow-body Airbus A320 family aircraft, and a commitment to purchase 156 A320neo family aircraft by the end of 2028. In 2019 and 2020, Frontier served approximately 23 million and 11 million passengers, respectively, across a network of approximately 110 airports.

Frontier Group Holdings was founded in 1994 and booked $1.3 billion in revenue for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol ULCC. Citi, Barclays, Deutsche Bank, Morgan Stanley, Evercore ISI, BofA Securities, J.P. Morgan, Nomura Securities, and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of March 29, 2021.

madmax757

Does this mean the IPO will be offered next week already ? Said pricing will be wrk of March 29?

docav8tor

I'm hearing March 31, so we'll have to wait and see.

OpenClimb

A $4.5 billion market value isn’t a bad return on an initial investment of ~$130 million. I wish my 401k was providing this kind of return! Say what you will about Indigo Partners, but these folks know how to make money.

Aero1900

If they price it at 4.5 Billion, does that potentially make it overvalued right from the start? Maybe at that price the stock doesn't do well?? I don't know

TrojanCMH

Say what you want about Spirit but they’re basically the same concept only larger and their market cap is $3.5 billion right now. $4.5 seems like it may be a little bit of a moon shot.

madmax757

Who knows ? Maybe all them millennials and Robinhood will be buying up all that ULCC Stonk and it will double in a couple hours !!!

I do like the trading symbol. ULCC - you can keep that one in any ulcc merger too.

V1 McFlyerson

I like it too.

docav8tor

Exactly what I was thinking. It's the perfect symbol for a merger of two ULCC.

gsaviator

For what it’s worth, I read several articles that said the ticker symbol was going to be “FRNT”.