AirBaltic's chief financial officer announced that the airline's initial public offering of shares has been pushed back to the year 2026.
AirBaltic, the Latvia-based airline, is seeking potential investors from neighbouring countries Lithuania and Estonia, as it prepares for additional state aid in the near future. However, neither Lithuania nor Estonia have shown significant interest in getting involved in the acquisition of AirBaltic.
Latvia, on the other hand, has taken a step forward. The country has approved a EUR14 million co-investment in AirBaltic alongside the Lufthansa Group, which has also invested EUR14 million for a 10% stake. This move secures Latvia's strategic position and supports AirBaltic's upcoming Initial Public Offering (IPO), planned for late 2025 or 2026.
Estonia, however, has declined the offer to acquire a stake. Lithuania, while still considering participation, seems to be waiting until the IPO stage to enter. This cautious approach could be due to financial considerations, strategic priorities, or the ongoing nature of discussions. No definitive public explanation for non-participation has been reported from either Lithuania or Estonia.
The lack of interest from Lithuania and Estonia may impact AirBaltic's future financial stability, as the airline faces challenges in finding investors. The budget situation of the unspecified government is causing concern due to the need for additional state aid for AirBaltic.
Witold Yakovlev, the Chief Financial Officer of AirBaltic, is at the helm during these challenging times. The postponement of the IPO until 2026 indicates the complexity of the situation.
Negotiations continue regarding potential involvement from Lithuania and Estonia at or before the IPO. No decision has been made regarding the acquisition of a stake in AirBaltic by either country. Both Lithuania and Estonia remain potential candidates for acquiring a stake in AirBaltic.
[1] Baltic Business News
[2] Reuters
[3] Bloomberg
[4] The Baltic Times
[5] AirBaltic Press Release
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