In a last-minute move, Hungarian carrier Wizz Air decided to suspend a planned initial public offering.
“Despite the positive response to our business story, and the company’s growth opportunities and prospects within the institutional investment community, Wizz Air today announces that the company has decided not to proceed with an IPO at this stage, due to the current market volatility in the airline sector,” the airline said in a statement.
The most likely scenario has Etihad trying to persuade Air Berlin’s founding shareholders to boost their existing stakes, which competitors would scrutinize intensely for signs Etihad is backing its German partners financially. (Image: Air Berlin)
Etihad currently holds a 29.2% stake in Air Berlin, which it may increase to 49.9% taking into account ownership and control restrictions that limit non-European Union investors to stakes below 50%. (Image: Air Berlin)