Republic Details IPO Plans

Aviation International News » June 2004
October 8, 2007, 6:08 AM

Indianapolis-based Republic Airways will soon issue five million shares of stock at between $14 and $16 each in its third attempt to take the company public, according to a prospectus filed last month with the SEC. The estimated $67 million IPO would help the company finance large commitments for new regional jets, the most recent involving a firm order for 13 Embraer 170s with options on another 37, twelve of which it plans to convert by July 1. Signed to fulfill a new code-share partnership with United Airlines, the Embraer 170 deal came just weeks after the company converted options on 16 ERJ-145s for use in subsidiary Chautauqua Airlines’ Delta Connection network.

Plans for Republic’s first IPO fell apart as a result of 9/11, when share prices
of all U.S. airlines plummeted. It filed again in March 2002, but conditions didn’t improve as quickly as management had hoped, prompting another delay. Now, after signing a new code-share contract with United and agreeing to more flying for Delta, Republic stands to build on last year’s 33-percent increase in revenue and twofold jump in profits, creating the most favorable conditions yet for raising capital. Republic will trade on NASDAQ under the ticker symbol “RJET.”

Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.