Avolon NYSE debut valued group at $1.6bn

Flotation the largest ever by an Irish-founded company on the US market

Ray Conner, president and chief executive officer of Boeing Commercial Airplanes (left) reacts during a news conference with Domhnal Slattery, chief executive officer of Avolon Leasing Group. Photographer: Matthew Lloyd/Bloomberg

Ray Conner, president and chief executive officer of Boeing Commercial Airplanes (left) reacts during a news conference with Domhnal Slattery, chief executive officer of Avolon Leasing Group. Photographer: Matthew Lloyd/Bloomberg

 

Irish aircraft leasing group Avolon’s launch on the New York Stock market valued the the company at more than $1.6 billion.

Avolon priced its shares at $20, valuing its 81 million shares at $1.6 billion and putting an enterprise value on the business of $6 billion, when its $4.3 billion debt is takeninto account.

Its flotation is the largest ever by an Irish-founded company on the New York Stock Exchange.

Its $20 launch price was below the $21 to $23 range it pitched when it announced flotation plans earlier this year.

Founder and chief executive, Dómhnal Slattery, said that market conditions prompted the change.

“During our roadshow in the last few weeks, equity markets have been very volatile,” he said.

“At the same time, our competitors, that is other lessors that are public, they all traded 6 per cent to 8 per cent off. But we are very pleased with where we priced.”

The shares began trading on the New York Stock Exchange under the symbol “AVOL” around two hours ago. They were selling for around the $19 mark 90 minutes after the launch.

Founded by Mr Slattery just over four years ago, Avolon has grown to become the third largest independent aircraft leasing company in the world.

Headquartered in Dublin, with offices in China, Dubai, Singapore and the US, it has 49 customers in 27 countries including Ryanair, American Airlines, Air France, Virgin Atlantic and KLM.

The company has a fleet of 227 aircraft, 134 of which are operational, with the others yet to be delivered.

It is backed by private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners, as well as Singapore’s sovereign wealth fund, all of whom sold down a portion of their stakes.

The shareholders sold a total of 13.6 million shares between them. Neither Mr Slattery nor any of his boardroom colleagues parted with any of their holdings.

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