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Colorado-based Frontier Group plans to go public with its IPO to raise around $630 million.

By Pavankumar on Mar 24, 2021 | 03:34 AM IST

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On Tuesday, Frontier Group released a regulatory filing. According to the filing, the low-cost carrier is aiming for a valuation of $4.52 billion in its U.S. initial public offering (IPO). This is a result of the air industry preparing for a rebound from pandemic-driven travel lows. 

The pandemic had resulted in low sales in most of the travel companies due to the restrictions on traveling and the barriers in most states to stop the spread of the virus. Recently, U.S. airlines are beginning to emerge from the pandemic-induced crisis that has opened doors for carriers catering to domestic leisure travel, which is rebounding quicker than business and international travel, particularly as more people receive COVID-19 vaccines. There is also news that the Budget carriers are also expected to bounce back quicker than larger rivals, thanks to their lower-cost structures and focus on domestic leisure travel. 

Frontier had canceled the plans of going public in July last year. The company has now again filed the listing this month. The company has plans to sell 30 million shares priced between $19 and $21 per share. The aim is to raise about $630 million. The company said it would be listing its stock on the Nasdaq under the ticker symbol “ULCC”. Citigroup, Barclays, Deutsche Bank Securities, Morgan Stanley, and Evercore ISI are the lead underwriters for Frontier’s offering.


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