Norway's Flyr airline rises 28% after IPO (updated)

Sparebank 1 Sorost-Norge

01/03/2021 09:13

(Adds quotes, background, updates share)
    OSLO, March 1 (Reuters) - The shares of Norway's Flyr
 FLYR-ME.OL  airline rose 28% in its debut trade on Oslo's
Euronext Growth stock market on Monday as the start-up carrier
prepares to compete with established players Norwegian Air
 NORR.OL  and SAS  SAS.ST .
    Flyr, which means "flying" in Norwegian, is betting on a
recovery in demand from the COVID-19 pandemic. It plans to
launch its maiden flight by mid-2021, serving domestic routes in
Norway and also offering trips to major European destinations.
    Founded by airline industry veterans, Flyr raised 600
million Norwegian crowns ($70 million) in its initial public
offering (IPO), and aims to buy or lease a fleet of eight jets,
with a planned increase to 28 aircraft in the next 3-4 years.
    "This will enable us to pursue opportunities in a changing
market and a recovering airline industry," Chief Executive Tonje
Wikstroem Frislid said following the IPO.
    "Due to the availability of aircraft and crew, a rapid and
demand-driven scale-up is possible for Flyr," she added.
    The fledgling company traded at 6.40 Norwegian crowns per
share at 0845 GMT, up from 5 crowns in the initial public
offering, giving Flyr a market value of 960 million crowns
following strong demand in the IPO.
    The global airlines industry has suffered heavy losses as
the coronavirus pandemic discouraged flying, and rival Norwegian
Air is currently restructuring to avert collapse, seeking to
scale down its fleet to around 50 aircraft from 140.
 urn:newsml:reuters.com:*:nL1N2KW0GY    
    Brokers Arctic Securities, Carnegie and Sparebank 1 Markets
managed Flyr's IPO.
($1 = 8.6351 Norwegian crowns)

 (Reporting by Terje Solsvik, editing by Gwladys Fouche and
Louise Heavens)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))