Apollo-backed Sun Country Airlines raises nearly US$220m in US IPO

[BENGALURU] Sun Country Airlines Holdings, a low-cost carrier backed by private-equity firm Apollo Global Management, sold shares in its initial public offering (IPO) on Tuesday at US$24 apiece to raise about US$218.2 million.

The Minnesota-based airline, which offers affordable flights and vacation packages to destinations across the United States and in Mexico, Central America and the Caribbean, sold 9.1 million shares in the IPO, previously aiming to sell at a target price range of US$21 to US$23.

Founded in 1982 by Jim Olsen and a small group of pilots and flight attendants, Sun Country has charter business and also operates cargo flights besides its scheduled passenger services.

Frontier Group Holdings, which competes with Sun Country in the low-cost carrier segment, filed paperwork to go public last week, banking on hopes of a rebound in air travel as countries roll out vaccines against Covid-19.

Barclays, Morgan Stanley and Deutsche Bank Securities are the lead underwriters for the offering.

REUTERS