U.S. airlines: Low-cost carrier Frontier aims for $4.52 billion valuation in IPO

As the Aviation industry prepares for a rebound from pandemic-driven travel lows; Frontier Group is aiming for a valuation of $4.52 billion in its U.S. initial public offering (IPO), according to a regulatory filing by the low-cost carrier on Tuesday.

U.S. airlines are beginning to emerge from the pandemic-induced crisis that has opened doors for carriers catering to domestic leisure travel, which is rebounding quicker than business and international travel, particularly as more people receive COVID-19 vaccines.

Budget carriers are also expected to bounce back quicker than larger rivals, thanks to their lower-cost structures and focus on domestic leisure travel.

Frontier, which withdrew listing plans in July, filed again this month, while Apollo Global Management-backed Sun Country Airlines made its successful stock market debut.

Frontier plans to sell 30 million shares priced between $19 and $21 per share, aiming to raise about $630 million.

Citigroup, Barclays, Deutsche Bank Securities, Morgan Stanley and Evercore ISI are the lead underwriters for Frontier’s offering.

Frontier will list its stock on the Nasdaq under the symbol “ULCC”.