LONDON - Wizz Air, central Eastern Europe's largest airline, abandoned its plans for an initial public offering on Monday, citing current market volatility in the airline sector.
The budget carrier said that in May it planned to list its shares on the London Stock Exchange, seeking to raise 200 million euros ($272 million) 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; the board will continue to focus on executing its strategy of driving growth and value," the company said in its statement.
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 per cent, and makes money while traditional local airlines have struggled or have gone bust in recent years. Wizz Air's flotation had come amid a surge of IPOs, but it is not the only business to scrap plans. Clothes retailer Fat Face pulled its listing in May.