Frontier seeks valuation of $4.52B in its initial public offering in the US

Frontier Group, a low-cost transportation group, plans to have a valuation of approximately $4.52 billion in its initial public offering in the United States, as its market prepares to recover strongly from the pandemic crisis that has slashed travel rates around the world.

American airlines have begun to return to work and overcome the crisis, which means the reopening of the doors for carriers to secure domestic leisure travel requests, which have been noted to be recovering faster than commercial and international travel, especially after many people received the Covid-19 vaccine, and it is also expected that low-cost carriers will improve faster than their massive competitors thanks to their focus on leisure travel and their low-cost structure.

Frontier re-applied for listing in the stock market after it canceled its plans and withdrew its application last July, while rival Sun Country Airlines had a successful initial public offering in the stock market, and Frontier plans to sell about 30 million shares at $19-21 per share, seeking to raise about $630 million, the company is currently affiliated with a private equity firm called Partners.

Frontier has more than 100 destinations for its flights in the United States, Mexico and the Caribbean and operates more than 100 Airbus A320 family aircraft, and sources close to the company reported that Citigroup, Barclays, Deutsche Bank Securities, Morgan Stanley and Evercore ISI will be among its most important guarantors in its initial public offering, knowing that its stock will be listed on the Nasdaq Stock Exchange under the symbol “ULCC“.

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