Allegiant Travel sets terms for 5 mln share IPO

[VAPOR]

Mon Nov 20, 2006 9:02am ET

WASHINGTON, Nov 20 (Reuters) - Low cost airline and travel service company Allegiant Travel Co. filed with the U.S. Securities and Exchange Commission on Monday to sell up to 5 million shares for between $15 and $17 per share in an initial public offering of stock.

Underwriters, led by Merrill Lynch & Co., have the option to buy an additional 750,000 shares to cover overallotments, the filing said.

Assuming an offering price of $16 a share, the company -- which earned $10.3 million on revenue of $180.2 million in the first nine months of 2006 -- would have an initial market capitalization of about $300 million, according to the filing.

The Las Vegas, Nevada-based company expects to list its shares on the Nasdaq under the symbol "ALGT"

 

[VAPOR]

11:15a ET December 8, 2006 (Reuters)
NEW YORK, Dec 8 (Reuters) - Shares of Allegiant Travel Co. , which operates a low-cost airline, soared 40 percent on Friday, a day after pricing above a forecast range.

Shares of the company traded at $25, after opening up 33 percent higher at $24 and briefly touched $50 in morning trading on the Nasdaq.

Allegiant Travel raised $90 million on Thursday with a 5 million share initial public offering that sold for $18 per share compared with a $15 to $17 forecast range.

Underwriters led by Merrill Lynch & Co. have the option to buy an additional 750,000 shares to cover overallotments, according to a filing with the U.S. Securities and Exchange Commission.

 

[inthegoo]

Wow, this is big for the entire industry. This is starting to sound a lot like the way a little airline called Southwest got started...

 

[VAPOR]

Wow, this is big for the entire industry. This is starting to sound a lot like the way a little airline called Southwest got started...

It is certainly getting interesting. Right now the cost per seat mile is about $0.05 which is way low.