Avianca-TACA Holding initial public offering (IPO) in the Colombian Stock Exchange was more than five times oversubscribed. The new company initially launched a $250 million offering (100 million preferred shares at a maximum offering price of $5.000 colombian pesos a share) but preliminary results showed requests for shares exceeded $1.5 billion dollars.
Fabio Villegas, President of AviancaTaca comments: "First of all we want to thank all the people that believe in our company and that have placed their trust in us. It fills us with pride that now AviancaTaca will have more than 50.000 new owners, that will allow us to continue growing and positioning ourselves as one of the leading airlines in the region".
The allocation process will be done in two layers. Employees and members of the AviancaTaca loyalty programme will have priority in the allocation of shares with amounts of up to approximately $8.000 dollars per person and the rest will be allocated on a prorata basis. The validation process of the requests will begin 18 April and the share allocation will be made between 29 April and 5 May.
The proceeds from IPO will be used for corporate expansion plans of the holding company, as well as its subsidiaries.