IPO For Spirit Airline Reported To Be Worth $300 Million

Ultra-low-cost Spirit Airlines based in Fort Lauderdale, FL, has filed with the SEC for an initial public offering (IPO) of up to $300 million in common stock. It is not yet known how many shares the company intends to offer, or on which stock exchange the airline will be traded, according to RTT News.

The airline, which was founded as a trucking company in 1964 in Michigan began flying as a Detroit-based Charter One in 1980. The company began scheduled airline service in May of 1992, and relocated to new corporate headquarters in Miramar, FL in 1999. The airline, which moved into the low-fare niche in 2006, now flies domestic routes including Puerto Rico as well as international flights to the Bahamas, Dominican Republic, Mexico, and other Latin American nations.

Reuters reports that the company will use the funds collected through the IPO to repay debt and to sever its relationship with Indigo Partners. It plans to retain $150 million of the net proceeds.

The airline posted a net loss of $2.8 million as of the second quarter of this year, compared with a profit of over $41 million a year ago.

FMI: www.spiritair.com