Allegiant Share Price Offer At $50
By Andrew Compart
The secondary public offering of 2.3 million shares of Allegiant Travel Co. common stock will be priced at $50 per share — more than the combined stock prices of the six biggest U.S. carriers as of the market close on May 5.
The second biggest shareholder in the Allegiant Air parent company, PAR Investment Partners, is selling 2.25 million shares, or more than half of its holdings (DAILY, May 5). Another 50,000 shares are being offered by company board member Timothy Flynn. The secondary offering is expected to close May 11.
The pricing actually isn’t all that surprising given that Allegiant’s stock closed at $51.62 May 5. Continental closed at $13.67, but American parent company AMR, Delta, United, Southwest and US Airways all closed at $7.53 (Delta) or lower. Their combined total came to $46.04.
Allegiant Air has carved out a profitable niche flying from smaller cities to major U.S. leisure destinations such as Las Vegas, Phoenix, Orlando, Fort Lauderdale and Tampa/St. Petersburg, and recently started service to Los Angeles.
Last month, the company reported a 31.3% operating margin and near-tripling of its first quarter profit on the strength of much lower fuel costs, rising ancillary revenue, fuller planes, its leisure-only focus and the relative economic health of some of its smaller markets (DAILY, April 21).
Photo: Allegiant
