London: Wizz Air, central eastern Europe’s largest airline, has shelved plans to list its shares on the London Stock Exchange, citing current market volatility in the airline business, the company said on Monday.
The budget carrier said last month it aimed to raise 200 million euros ($272 million) via the listing to strengthen its balance sheet as it seeks to fund more growth.
“The outlook for Wizz Air’s business remains extremely positive and unaffected by the decision not to proceed with an IPO (initial public offering),” the company said.
Wizz Air is not the only business to scrap plans for a stock market debut in the past few weeks. Clothes retailer Fat Face pulled its listing in May.
Airline stocks were hammered last week after German carrier Lufthansa cut profit targets for the next two years, citing competition from Middle East and low-cost rivals.
Wizz competes with no-frills rivals include Ryanair and easyJet. Shares in easyJet have slumped 9 percent over the past week while Ryanair’s are about 7 per cent lower over the same period.
Wizz Air, which started to fly 10 years ago, is the largest budget airline of central and eastern Europe with a market share of 38 percent, and makes money while traditional local airlines have struggled or have gone bust in recent years.
