Dublin aircraft leasing company Babcock & Brown Air floated on the New York Stock Exchange yesterday with an initial market capitalisation of $772.9 million (€546.39 million).
A division of Babcock & Brown, the Australian investment group that owns Eircom, the company struck a listing of $23 per American Depository Receipt (ADR) - the mid-point of the suggested range. The stock changed hands yesterday afternoon at $22.84.
Babcock & Brown retains 30-38 per cent of the firm after its initial public offering. Chief executive Phil Green said the listing would provide a platform for the expansion of the business.
The company is run from Dún Laoghaire by Colm Barrington, a director of the Dublin Airport Authority.
The public offering of 18.7 million ADRs was accompanied by the issue of 14.9 million ADRs to Babcock & Brown and other private investors at the flotation price.
"Our ability to complete both debt and equity raisings within our target pricing range over the last two months reflects the ongoing demand for investment in assets with strong visible cashflows, despite the volatility in capital markets," Mr Green said.
The company said it expected to have an initial annualised dividend yield of 8.7 per cent at the flotation price.
The cash raised from the flotation and share placement will be used to buy 47 aircraft leased to 29 airlines, 44 of them from a company called Jet-i and three from a firm called Double Black Diamond.
Documents filed with the US Securities and Exchange Commission said Babcock & Brown executive and chairman of the aircraft leasing company Steve Zissis could net over $12 million from this deal, as he owns 20 per cent of Double Black Diamond.
Babcock & Brown and a number of its subsidiaries largely control Jet-i. The SEC documents said Mr Barrington holds "less than 0.5 per cent" of Babcock & Brown Global Partners, which ultimately holds 32.8 per cent of Jet-i.
Mr Zissis and overall group director James Fantaci have "less than 1 per cent" of other subsidiaries that have various interests in Jet-i.
