Wizz Air Ltd., Eastern Europe’s biggest budget carrier, scrapped plans for an initial public offering in London less than four weeks after announcing it would list, citing unpredictable conditions in the sector.
The outlook for the business is “unaffected by the decision not to proceed with an IPO,” the Vecses, Hungary-based carrier said in a statement today. The share sale on the main market of the London Stock Exchange had been targeting proceeds of about 200 million euros ($271 million).
Both Deutsche Lufthansa AG and Aer Lingus Group Plc issue profit warnings last week, and Wizz, which began flying a decade ago, faces heightened competition as Ryanair Holdings Plc sets up more bases in eastern Europe. As of the end of March, Wizz Air had a fleet of 46 Airbus Group NV single-aisle planes, flying 13.9 million passengers a year to 35 countries.
“Wizz Air today announces that the company has decided not to proceed with an IPO at this stage due to the current market volatility in the airline sector,” the carrier said. “The board will continue to focus on executing its strategy of driving growth and value.”