Summary
- easyJet founder proposes a US market listing for higher valuation.
- Recent developments show easyJet is heading in the right direction with ambitious plans, corresponding to fleet expansion and dividends.
- The trend of airlines looking for IPOs continues, with Flybondi and Virgin Australia planning market listings as well.
Considered one of Europe’s largest low-cost carriers, easyJet, has established itself as a number one player within the continent. While the airline is currently price several billion dollars, its founder thinks that one other market listing in america could help elevate its overall market value considerably.
easyJet founder wants a US listing
At the same time as budget carrier easyJet continues to expand its offerings and plans a fleet expansion, its founder, Sir Stelios Haji-Ioannou, feels that the airline could also profit an incredible deal by choosing an inventory on the US Stock Exchange.
Photo: Markus Mainka | Shutterstock
easyJet is already listed on the London Stock Exchange. Its shares were formally admitted in November 2000 under the ticket EZJ. But Haji-Ioannou, who holds a £649 million stake in the corporate, feels it’s about time the airline went for a dual market listing.
Competing with Ryanair?
Haji-Ioannou says that there’s no harm in easyJet listing on the Nasdaq stock exchange and that it could actually help the carrier change into a more attractive entity for investors. He even cites the instance of Ryanair and says that its dual listing, the first one on the Irish stock and one other one on Nasdaq, has helped elevate its market value. He told Mail Online,
Photo: Markus Mainka | Shutterstock
Haji-Ioannou, who founded the airline in 1995, is aware that such a call would must be unanimously approved by the airline’s management. Whether his suggestion will likely be acted upon in the long run stays to be seen.
Ambitious plans
Meanwhile, developments at easyJet in recent times have indicated that it’s marching ahead with grand plans for the long run. In November 2023, the low-cost carrier reinstated dividends after posting record-breaking H2 results. It said that it expected to pay out a dividend representing 20% of the after-tax headline profit in FY2024.
Photo: Markus Mainka | Shutterstock
Then, in December, the carrier confirmed an order for 157 Airbus A320neo family of aircraft, with its shareholders approving the deal just two months after its initial announcement. While the firm order was for 157 jets, the deal also included options for 100 more aircraft. This was a major development in easyJet’s fleet modernization and growth program.
Other airlines searching for IPOs, too
Carriers worldwide often look to launch IPOs after reaching a certain scale. Last 12 months, Argentina’s Flybondi announced that it plans to also list on Nasdaq, with the deal expected to undergo in the primary half of this 12 months.
Photo: claudio santisteban | Shutterstock
Virgin Australia can also be trying to be listed on the Australian Stock Exchange (ASX) once more, with private equity specialists Bain Capital recently saying that it’s looking for advice on the airline’s return to public ownership.
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