EasyJet to come with £560 million price tag
Oct 31, 2000, 11:13 am
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EasyJet to come with £560 million price tag
EasyJet, the no-frills airline, is to come to the stockmarket with a £560 million price tag when it floats next month.
That's the indicative valuation outlined in the firm's just-published pathfinder prospectus. It's suggesting a share price in the 250p-350p range prior to the November 14th pricing. And formal commencement of dealings on November 15th.
Meanwhile, City bookmakers, Financial Spreads, were quoting a grey market price for the shares on Monday night of 235p-250p.
That's the indicative valuation outlined in the firm's just-published pathfinder prospectus. It's suggesting a share price in the 250p-350p range prior to the November 14th pricing. And formal commencement of dealings on November 15th.
Meanwhile, City bookmakers, Financial Spreads, were quoting a grey market price for the shares on Monday night of 235p-250p.
Oct 31, 2000, 6:59 pm
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Wouldn;t say their fleet is that old - the Boeing news release says their average fleet age is 4 years. They run 2nd gen 737s (-300s I think) and have just taken delivery of their first -700.
http://www.boeing.com/news/releases/...e_001015b.html
You might have been thinking of Ryanair which has more than a few -200s but is also adding -700s.
http://www.boeing.com/news/releases/...e_001015b.html
You might have been thinking of Ryanair which has more than a few -200s but is also adding -700s.
Nov 15, 2000, 4:57 am
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Information source: http://www.msn.co.uk/bookexredir.asp....com/news/#st0
No-frills airline, EasyJet, has set a price of 310p a share ahead of formal stockmarket dealings that begin next week. That gives it a value of around £775 million. But private investors are being left out in the cold with the 25% of the firm's capital up for grabs being made available only to large institutions.
The company's argument is that it wants to avoid a repeat of the lastminute.com fiasco where there was an even but ultimately very small distribution of shares among punters.
So Easyjet has taken the easy route out by not bothering to make any shares available at all.
Meanwhile, the 310p price is in line with expectations - the company itself having originally predicted a 250p to 350p price range.
No-frills airline, EasyJet, has set a price of 310p a share ahead of formal stockmarket dealings that begin next week. That gives it a value of around £775 million. But private investors are being left out in the cold with the 25% of the firm's capital up for grabs being made available only to large institutions.
The company's argument is that it wants to avoid a repeat of the lastminute.com fiasco where there was an even but ultimately very small distribution of shares among punters.
So Easyjet has taken the easy route out by not bothering to make any shares available at all.
Meanwhile, the 310p price is in line with expectations - the company itself having originally predicted a 250p to 350p price range.
Nov 15, 2000, 2:33 pm
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Information source: http://www.thisislondon.co.uk/dynami...text_id=278393
Stelios Haji-Ioannou, founder of no-frills airline easyJet, is today sitting on a paper fortune of £400 million after the company took off on the stock market.
Today's flotation could mean thousands more cheap flights to short haul destinations across Europe - and increases the prospect of a budget airline price war, driving prices even lower. City institutions were so keen to acquire shares in easyJet before they began trading that the share issue was more than seven times oversubscribed.
When dealing started today the shares which had been offered at 310p promptly shot to a premium of 336p giving Mr Haji-Ioannou a paper fortune of well over £400 million for his majority share. The group is now valued at £846 million.
The Greek-born son of a shipping magnate plans to use millions raised by the float to purchase more aircraft to fly to more destinations in Europe. City analysts believe that price-cutting could now break out between the budget airlines, including main rival Ryanair, as they fight for market share.
Today's successful launch on the London Stock Exchange will also bring share fortunes for easyJet chief executive Ray Webster, 54, who has options giving him the right to buy 4.3 million shares at 182p. Mr Webster is seen by many in the City as the power behind easyJet. Stelios, they say, prefers starting companies to running them and it is chief executive Mr Webster who, since the early days, has steered the company's fortunes ever upwards as he maintains day-to-day control while Stelios looks after publicity and new ventures. Other staff and executives at the airline will also have the right to shares in easyJet.
The airline has plans to become the first to sell 100 per cent of its tickets on the internet. Currently 80 per cent of easyJet's 5.5 million passengers book online. By cutting out travel agents and teams of telesales staff Mr Haji-Ioannou believes that his airline can make savings of 30 per cent compared with airlines that book tickets through more conventional routes.
He has promised to pass on some of these savings to passengers in the form of lower ticket prices.
Mr Haji-Ioannou, 33, founded easyJet with a £5 million loan from his shipping magnate father. But, as he is fond of pointing out, £5 million is, relatively speaking, a tiny sum with which to challenge the huge global muscle of the established airlines.
As the 20-something son of a multi-millionaire, he points out, he could easily have taken the playboy route to Monte Carlo. Instead he went to Luton Airport and founded his no-frills airline. He had unfashionable orange jets with orange-clad cabin crew and advertised flights to Glasgow that he claimed cost "less than the price of a pair of jeans".
Five years on the company now flies 28 routes across Europe, carries 5.5 million passengers a year, and has an 18-strong fleet of 737s. The partial-flotation today will provide the means to raise these figures considerably higher.
Despite this fortune the company's first advertising slogan - "cheaper than a pair of jeans" - remains telling. This is a business that, metaphorically, wears jeans rather than designer suits and ties.
Mr Haji-Ioannou loves to push this image. He is extraordinarily press-friendly and has a knack for and a love of self-publicity. When BA launched its own low-cost wing, Go, for example, he bought seats for himself and a gang of his employees on the inaugral flight and they turned up in their orange outfits to poop BA's party.
Then there are other stories and rumours - he's going to merge with Virgin Atlantic, the gossip columns claimed; he's going to buy the football club he supports, Tottenham Hotspur, went the rumour. These stories didn't need to be true to keep Stelios's profile - and that of his company - high.
Mr Haji-Ioannou, still single and increasingly eligible, admits his inspiration for easyJet came from Sir Richard Branson: "I was approached to be an investor in Virgin's flights to Athens ... I became interested in setting up my own low-cost airline rather than investing in someone else's."
But he took more than the idea of an airline from Sir Richard, much of the philosophy came from him too. Now, the Virgin influence is plain to see: the easy brand is becoming almost as ubiquitous, with easyRentacar, easyDotcom and easyEverything, a chain of internet cafés.
Stelios Haji-Ioannou, founder of no-frills airline easyJet, is today sitting on a paper fortune of £400 million after the company took off on the stock market.
Today's flotation could mean thousands more cheap flights to short haul destinations across Europe - and increases the prospect of a budget airline price war, driving prices even lower. City institutions were so keen to acquire shares in easyJet before they began trading that the share issue was more than seven times oversubscribed.
When dealing started today the shares which had been offered at 310p promptly shot to a premium of 336p giving Mr Haji-Ioannou a paper fortune of well over £400 million for his majority share. The group is now valued at £846 million.
The Greek-born son of a shipping magnate plans to use millions raised by the float to purchase more aircraft to fly to more destinations in Europe. City analysts believe that price-cutting could now break out between the budget airlines, including main rival Ryanair, as they fight for market share.
Today's successful launch on the London Stock Exchange will also bring share fortunes for easyJet chief executive Ray Webster, 54, who has options giving him the right to buy 4.3 million shares at 182p. Mr Webster is seen by many in the City as the power behind easyJet. Stelios, they say, prefers starting companies to running them and it is chief executive Mr Webster who, since the early days, has steered the company's fortunes ever upwards as he maintains day-to-day control while Stelios looks after publicity and new ventures. Other staff and executives at the airline will also have the right to shares in easyJet.
The airline has plans to become the first to sell 100 per cent of its tickets on the internet. Currently 80 per cent of easyJet's 5.5 million passengers book online. By cutting out travel agents and teams of telesales staff Mr Haji-Ioannou believes that his airline can make savings of 30 per cent compared with airlines that book tickets through more conventional routes.
He has promised to pass on some of these savings to passengers in the form of lower ticket prices.
Mr Haji-Ioannou, 33, founded easyJet with a £5 million loan from his shipping magnate father. But, as he is fond of pointing out, £5 million is, relatively speaking, a tiny sum with which to challenge the huge global muscle of the established airlines.
As the 20-something son of a multi-millionaire, he points out, he could easily have taken the playboy route to Monte Carlo. Instead he went to Luton Airport and founded his no-frills airline. He had unfashionable orange jets with orange-clad cabin crew and advertised flights to Glasgow that he claimed cost "less than the price of a pair of jeans".
Five years on the company now flies 28 routes across Europe, carries 5.5 million passengers a year, and has an 18-strong fleet of 737s. The partial-flotation today will provide the means to raise these figures considerably higher.
Despite this fortune the company's first advertising slogan - "cheaper than a pair of jeans" - remains telling. This is a business that, metaphorically, wears jeans rather than designer suits and ties.
Mr Haji-Ioannou loves to push this image. He is extraordinarily press-friendly and has a knack for and a love of self-publicity. When BA launched its own low-cost wing, Go, for example, he bought seats for himself and a gang of his employees on the inaugral flight and they turned up in their orange outfits to poop BA's party.
Then there are other stories and rumours - he's going to merge with Virgin Atlantic, the gossip columns claimed; he's going to buy the football club he supports, Tottenham Hotspur, went the rumour. These stories didn't need to be true to keep Stelios's profile - and that of his company - high.
Mr Haji-Ioannou, still single and increasingly eligible, admits his inspiration for easyJet came from Sir Richard Branson: "I was approached to be an investor in Virgin's flights to Athens ... I became interested in setting up my own low-cost airline rather than investing in someone else's."
But he took more than the idea of an airline from Sir Richard, much of the philosophy came from him too. Now, the Virgin influence is plain to see: the easy brand is becoming almost as ubiquitous, with easyRentacar, easyDotcom and easyEverything, a chain of internet cafés.