airBaltic (BT, Riga) has formally completed its announced capital reduction, an official filing revealed, a move that comes ahead of its long-awaited initial public offering (IPO). The majority Latvian state-owned carrier also announced that its executive board had agreed to slash its members' own salaries by almost half ahead of the listing.
After the share capital restructure, the company went from having four share classes to only one, with all shares valued at EUR0.10 euros (USD0.105). The move cut the capital by EUR571.3 million (USD597.5 million) to EUR25.2 million (USD26.4), the news agency LETA reported. There will be no remuneration or compensation to shareholders in connection with the reduction in the nominal value of the share classes.
The board cut its salaries by 40% until the IPO in a move described in a statement by Andrejs Martinovs, chairman of the supervisory board of airBaltic, as “a clear demonstration of their confidence in the airline’s future and their unwavering commitment to delivering a successful IPO.”
airBaltic is planning to raise EUR300 million (USD314 million) via an IPO now expected to take place this or next year, after some deferrals. Ahead of the listing, Lufthansa Group purchased a 10% stake in the airline. Latvia’s government aims to retain 25% of its stake in the carrier (it currently owns 97.97%) after the IPO.
