The regulations for the reduction of share capital state that the share capital of “airBaltic” so far is 596.473 million euros, thus the share capital of “airBaltic” after the reduction will be 25.179 million euros.
Currently, the company’s share capital consists of 25,647,282 A-category shares, where the nominal value of each share is ten euros, 74,323,152 B-category shares, where the nominal value of each share is three euros, 113,164,518 C-category shares, where the nominal value of each share is one euro, as well as 38,660,300 Class D shares with a nominal value of ten cents.
“airBaltic”, preparing for the IPO, has decided to simplify the company’s existing share structure. Thus, the nominal value of all shares of categories A, B and C will be reduced to ten cents and EUR 571.293 million will be directed to cover the accumulated losses of previous years. Likewise, no remuneration or compensation will be paid to shareholders in connection with the reduction of the nominal value of these categories of shares, the regulations state.
Thus, the share capital of “airBaltic” after the reduction will be 25.179 million euros, which will consist of 251,795,252 dematerialized shares with a nominal value of ten cents per share. Each share will give the right to one vote at the company’s shareholders’ meeting, the right to a dividend and a liquidation quota.
“airBaltic” representatives informed the agency LETA that on August 30, the government looked into questions about “airBaltic” preparing for the IPO. In the preparation process, “airBaltic” will simplify the company’s existing share structure so that it becomes more attractive to investors.
The company has decided to consolidate or combine the four existing categories of shares into one, stating that such a step is a common international practice to make the share structure even more transparent and attractive to the market. Likewise, reducing the share capital will improve the company’s own capital structure.
“airBaltic” explains that with the consolidation of shares, their nominal value will also decrease. The purpose of such action is to improve the capital share of the airline by reducing the share capital and directing it to cover the losses of previous years. The company emphasizes that this is a technical accounting process and does not change either the value of the airline or the value of the state share package.
The president and CEO of “airBaltic”, Martins Gauss, states that the company, together with banks and international consultants, is currently intensively preparing for the listing of “airBaltic” shares on the stock exchange.
“Simplifying the share structure is one of the homeworks that must be done now to help the company implement the IPO. It should be emphasized that the purpose of the IPO is to increase the company’s capital and attract new investors, which will otherwise increase the value of the company. It is planned that the potential IPO will allow not only financial investors, but also for private retail investors to become shareholders of “airBaltic”, says Gauss.
The government meeting also considered other prerequisites to be fulfilled for the successful consolidation of the IPO and share categories, including the preservation of connectivity (destinations) and the number of flights and Riga Airport as the basic flight base of “airBaltic”.
LETA already announced that the government agreed in the closed part on August 30 that the state should retain at least 25% plus one share in the company’s capital after the IPO of “airBaltic”.
Minister of Transport Kaspars Briškens (P) explained that currently there are no negotiations with the strategic investor of “airBaltic” about the sale of a controlling stake, but about obtaining a minority stake before the IPO or on the way to the IPO, as well as possibly participating in the IPO. “The state condition agreed by the government on Friday is that the state should retain at least 25% plus one share after the IPO, which is this blocking minority,” Bryshken said earlier.
It has already been reported that “airBaltic” transported a total of 4.536 million passengers last year, which is 35.7% more than in 2022, and made 44,100 flights, which is 18.3% more than the year before.
The audited turnover of “airBaltic” last year amounted to 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, in contrast to losses a year earlier.
The Latvian state owns 97.97% of “airBaltic” shares, while “Aircraft Leasing 1” owned by financial investor, Danish businessman Lars Tūsen – 2.03%.
2024-09-03 03:33:27