Latvian airline Air Baltic Corp AS is planning to conduct an initial public offering (IPO) in the second quarter of this year. While a final decision has yet to be made, the company’s CEO, Martin Gauss, confirmed the expected timeline during a recent call with investors.

Reasons for Choosing London

The London Stock Exchange has long been known for its stability and high capitalization, making it an attractive venue for companies seeking substantial investment and aiming to enhance their reputation on the international stage.

Key factors contributing to the choice of London for the IPO include:

• Global Access to Capital. London attracts a wide range of institutional and retail investors from across the globe.

• Top Rankings. British stock exchanges are regarded as some of the most reliable and liquid.

• Quality Regulation. The regulatory framework in the UK covers a broad spectrum, which can benefit potential investors.

Potential for Dual Listing

Air Baltic's management is also exploring the possibility of a dual listing, meaning shares could be listed on both the London and Riga stock exchanges. This approach could significantly increase interest in the company and expand its shareholder base.

Gauss highlighted that a final decision on dual listing has not been made yet; however, this strategy could provide several advantages:

1. Increased Liquidity of Shares. A simultaneous listing on two exchanges would provide more buyers and sellers, thus facilitating trading.

2. Expanded Investor Audience. Allowing access to shares from different regions could attract more investors.

3. Strengthening the Brand. An IPO on an international platform helps to enhance the company’s visibility.

Expectations from the IPO

Preliminary estimates suggest that Air Baltic’s IPO could raise up to 300 million euros (approximately 328 million dollars). These funds are intended to support the company’s growth, modernize its fleet, and expand its business model.

Gauss also emphasized that the success of the IPO greatly depends on market conditions. Therefore, the company’s priority remains on continuously monitoring the market environment. If successful, the share prices could see significant appreciation.

Conclusion

Air Baltic aims for further growth and modernization through an IPO in London. Choosing a reliable financial venue, considering dual listing possibilities, and attracting investment could significantly strengthen the company’s market position. The anticipation surrounding the IPO is garnering attention from both analysts and market participants, underscoring the significance and ambition of this venture.