Shares of Sun Country will rise early on Wednesday as air travel continues to rise and airline stocks surge after the price of the initial public offering was set above expectations late on Wednesday.
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The low-cost carrier is priced at 24 per share, which is higher than the expected range of 21 to 23, with the company valued at 34 1.34 billion.
Sun Country Airlines (SNCY) sold 9.09 million shares and raised 8 218.2 million from the IPO. It plans to use the proceeds from the CARES Act loan repayment offer from the federal government.
The company reported a loss of 3. 3.9 million last year on revenue of $ 401.5 million, according to regulatory filings.
Shares of Sun Country jumped 42% to 34.00 on the Nasdaq today. Discount carrier Southwest Airlines (LUV) is the rally of 1.3% and ultra-cost carrier Spirit Airlines (Save) increased 1%.
In other airline stocks, American Airlines (AAL) up 0.7%, United Airlines (UAL) is 1.3% and Delta Air Lines (DAL) added 0.8%.
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Airlines have struggled with coronavirus epidemics, but U.S. Increasing vaccine distribution in has led to an increase in air travel in recent weeks.
The Transportation Security Administration says it has screened more than 1 million passengers in the last six days since the start of the normally busy spring break travel season.
Sun Country stock goes public as airlines have topped or almost achieved a pre-epidemic level in stocks. On Monday, top carriers reported strong bookings or increased forecasts for cash flow.
Travel excitement is also consistent with other airlines IPOs that could come soon in the wake of the Sun Country stock launch.
Last week, budget carrier Frontier Airlines applied for an IPO, excluding plans to go public last year. He plans to make a listing on the Nasdaq under Ticker FRNT.
Frontier is owned by Indigo Partners, a private equity firm that owns three other ultra cost carriers, Chile’s Jetsmart, Mexico’s Valeris and Hungary’s Viz Air.
Follow Gillian Rich Twitter For aviation news and more.
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