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Investing

Share Overhang Weighing on Spirit Airlines (SAVE)

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By Jon C. Ogg Published
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Spirit Airlines, Inc. (NASDAQ: SAVE) has performed well since its early-summer IPO as a low-cost discount carrier in the United States, the Caribbean, and Latin America.  Today is bringing some weakness after the company filed to sell shares around the lock-up period for insiders.

The S-3 Filing listed Barclays Capital, Citigroup, and Morgan Stanley as the book-runners for the offering.  It also listed the firms of Deutsche Bank Securities, Raymond James, Dahlman Rose & Company, and Macquarie Capital as co-managers.

No formal share count was listed in the prospectus but it has listed the amount as being “up to $172.5 million” of Spirit’s common stock.

This ultra-low cost air carrier came public in an offering at $12.00 per share on May 26 and the post-IPO trading range since May has been $10.18 to $17.48.  Shares were initially much lower on the day but the stock is down almost 5% at $15.39 on more than three-times normal trading volume.

Spirit’s Full S-3 Filing is available here.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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