Airplane lessor Babcock & Brown Air Ltd’s shares have
dropped from 23p per share at IPO stage to 22.73p yesterday
(September 27).
Based in Ireland, Babcock & Brown Air was formed in May by
Australian investment firm, Babcock & Brown Ltd., which
continues to hold 13 per cent of the company.
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The proceeds from the IPO, along with $853 million of
securitised leases and a concurrent private placement, are being
used to fund the initial purchase of planes that the company will
lease to airlines under long-term contracts.
Forty four of its planes are being purchased from Jet-I Holdings
LLC, a company managed by Babcock & Brown Ltd.
Babcock & Brown Ltd.’s aircraft-management unit will help
the new company buy and lease aircraft, and will also manage its
day-to-day operations.
Babcock & Brown Air is hoping to capitalize on increasing
demand for air travel, with global passenger traffic more than
doubling from 1991 to 2006.
Genesis Lease Ltd, which went public in December 2006 at $23 a
share, rose 3 per cent on its first day of trading and was at
$24.70 yesterday.
Aircastle Ltd. made its debut in August 2006 at $23 and rose 16
per cent on its first day. Yesterday its share price rose to
$33.70.
