AviancaTaca in $250m IPO

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Avianca-TACA Holding has launched an initial public offering (IPO) in the Colombian Stock Market (Registro Nacional de Valores y Emisores, RNVE).

The corporate company of Avianca and Taca Airlines is issuing a total of 100 million preferred shares at a maximum offering price of $5.000 colombian pesos ($2.7) a share. The minimum investment amount is equivalent to $2.700.

The sale of the preferred shares began 28 March and the offering is expected to close 15 April. Active involvement from local and foreign investors is expected, says Bogota based Avianca-TACA Holding.

The proceeds from IPO will be used for corporate expansion plans of the holding company, as well as its subsidiaries.

AviancaTaca says the main drivers for the initial private offering are the excellent results obtained from the combined operation, as well as the potential growth for the integrated business.

Fabio Villegas Ramirez, the CEO for AviancaTaca Holding, comments: "The initial private offering for AviancaTaca is a very important step in the history of the corporation. Since the official integration, in February 2010, we have been working non-stop in AviancaTaca to offer a superior service throughout the region. Currently, we have an excellent and broad products and service portfolio, one of the most modern fleets in the continent, multiple connection possibilities and a word class management team."

Avianca and TACA operate a 98-aircraft combined fleet mostly composed of Embraer 190s, Airbus A320 Family aircraft and A330s. Combined backlog includes 14 A319s, 25 A320s, five A330s, one Embraer 190 and 12 Boeing 787-8s.