Americas

Surf Air Mobility to list prior to merger with Southern Airways

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Surf Air Mobility to list prior to merger with Southern Airways

Surf Air Mobility (SAM) is planning to go public through a direct listing on the New York Stock Exchange, prior to its merger with Southern Airways Corporation.

As per the US Securities and Exchange Commission (SEC) filing, Southern Airways Corporation and its subsidiaries will become a will become a wholly-owned subsidiary of SAM. Southern Airways stockholders will receive SAM’s common stock equivalent to $81.25 million or 12% of the fully-diluted shares of the common stock upon listing. Surf Air will remain a wholly-owned subsidiary of SAM.

The parent, SAM will directly or indirectly own all of the equity securities, assets, business and operations of each of Surf Air and Southern.

“SAM had filed a registration statement with the SEC relating to the proposed direct listing of its common stock. It intends to list on the NYSE under the ticker symbol "SRFM". Unlike an Initial Public Offering (IPO), a direct listing requires no newly-issued shares and no involvement of underwriters,” SAM said in a statement to investors.

The company had announced a confidential submission with the SEC for a proposed direct listing on November 16, 2022.

The Southern acquisition will result in a combined regional airline network servicing US city across the Mid-Atlantic, Gulf South, Midwest, Rocky Mountains, West Coast, New England and Hawaii.

Surf Air and Southern together served over 99,000 passengers across 44 cities with over 18,000 departures for the three months ending March 31, 2023.

As per the filing, Surf Air generated $5.5 million and Southern $22.7 million in revenue, an increase of 14.3% and an increase of 35.6%, respectively, on the same period in 2022.