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Wizz Air shares fly lower as Indigo Partners places 18.7% stake with institutional investors

Indigo has sold an aggregate of 10.7mln ordinary shares in the company by way of an accelerated bookbuild to institutional investors at a price of 2,320p each

Wizz Air plane
In early morning trading, Wizz Air’s shares were 6.6%, or 161p lower at 2,264p

Wizz Air PLC (LON:WIZZ) saw its shares lose ground this morning on news private equity firm Indigo Partners  is selling its 18.7% stake in the eastern European budget airline.

In a statement, Wizz said Indigo has sold an aggregate of 10.7mln ordinary shares in the company by way of an accelerated bookbuild to institutional investors at a price of 2,320p each, raising gross proceeds of approximately £249mln.

READ: Wizz Air shares fly again as City upbeat on results

Wizz shares floated on the London stock market in February 2015 at an initial offer price of 1,150p per share, and have more than doubled since then.

In early morning trading, the FTSE 250-listed firm’s shares were 6.6%, or 161p lower at 2,264p.

Phoenix-based Indigo Partners, whose investments have also included Mexico's Volaris, Frontier Airlines, Spirit Airlines and Tiger Airways, first invested in Wizz back in 2004.

The private equity firm will own no ordinary shares in the airline after the placing but will still hold 44.8mln convertible shares and convertible notes, which if fully converted would entitle them to an additional 24.2mln new ordinary shares in Wizz.

Quick facts: Wizz Air Holdings

Price: 3298 GBX

AIM:WIZZ
Market: AIM
Market Cap: £3.39 billion
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