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.
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By GlobalDataGenesis 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.
