Canada’s Porter shelves its IPO plans

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Canadian Bombardier Q400 turboprop operator Porter Airlines has suspended plans for an initial public offering (IPO), citing volatility in equity markets.

Porter on 16 April disclosed its plans for an IPO, and later released a prospectus that showed a C$6 million (US$5.7 million) loss for the first quarter as expenses jumped from C$30 million to C$53 million year-over-year. For the full year fiscal 2009 the carrier lost C$4.6 million.

"Our company is well-positioned to wait until the equity markets stabilise before deciding whether to proceed with a new public offering," says Porter CEO Robert Deluce in a statement released by Porter today regarding the carrier's plans not to proceed with the IPO.

Previously, Porter has said it plans to use proceeds from its IPO to support working capital and other general corporate purposes.

In the prospectus Porter cites a US$10 million non-revolving term loan and an $11 million fund to complete a new terminal at Toronto City Centre airport.

Porter also notes in the prospectus that over the next 12 months it expects to acquire seven additional Bombardier Q400s. The carrier currently operates 20 of the type.