Gulfstream plans IPO; will use some proceeds to buy aircraft

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Gulfstream International Airlines’ parent Gulfstream International Group is planning to launch an initial public offering (IPO) of shares, and will use some of the proceeds to acquire aircraft.

In a filing with US Securities and Exchange Commission (SEC), the holding company says it intends to sell 1 million shares of common stock at $11 to $13 per share. The underwriter has a 30-day option to purchase up to an additional 150,000 shares from the company at the IPO price less an underwriting discount.

We estimate the net proceeds from the sale of the shares of common stock we are offering will be approximately $10.2 million,” says Gulfstream. “If the underwriter fully exercises the over-allotment option, the net proceeds will be approximately $11.8 million.”

The company expects its common stock will be approved for listing on the American Stock Exchange under the symbol “GIA”.

Gulfstream plans to use roughly $3.3 million to fully redeem 12% of its subordinated debentures. The remaining proceeds “will be used to acquire additional aircraft, to finance existing aircraft, or for general working capital purposes”, says Gulfstream.

The holding company’s Gulfstream International Airlines subsidiary currently operates more than 200 scheduled flights per day, serving 11 destinations in Florida and 10 destinations in the Bahamas. Its fleet consists of 27 Raytheon Beech 1900D turboprops and eight Embraer EMB-120 Brasilias.

The carrier operates under a principal codeshare and alliance agreement with Continental Airlines, but is also codeshares with Panama’s Copa Airlines, Northwest Airlines and United Airlines.

Gulfstream’s other subsidiary, Gulfstream Training Academy, provides training to commercial pilots.