Flybe has raised £66 million in a stockmarket flotation. The float was oversubscribed by a factor of two to one. Flybe CEO, Jim French said he was "very pleased" that the share offer was oversubscribed which valued the business at £215 million after it launched at 295p a share. After a day of trading on the grey market, before formal trading begins on Wednesday, the shares closed up 16% at 341.25p.
"We have long seen a listing as an essential step in the growth and development of the business," said French.
Flybe said half the proceeds from the flotation would be used to fund aircraft deliveries from Embraer, with the rest bolstering the cash reserves. Flybe is looking to expand via codeshare deals, following existing deals with Air France and Finnair. British Airways was the only leading shareholder not to dilute its stake in the offering as it acquired more shares to keep its holding at 15%. BA became an investor after Flybe took over its regional business, BA Connect, in 2007.