Flybe IPO takes off

Flybe, Britain's biggest domestic airline, has priced its IPO at 295p, valuing the carrier at £215m.Conditional dealings start this morning. The airline will sell 20.34m new shares, some 28% of the company, which will raise about £60m for the carrier.The stock trades at 334p as of midday Friday, surging ahead around 13% after the offer.Flybe intends to use half of the net proceeds raised to assist funding its aircraft fleet expansion, while the remaining half will be used to give it a war chest should it come across any attractive acquisitions, or "strategic arrangements with other European airlines", the group said.Flybe's directors and associates will hold approximately 7%, while Rosedale Aviation Holdings Limited will hold approximately 49.6%.The group is one of the leaders in the European regional aviation market offering four times more domestic routes than any other carrier during the summer season.The airline was also one of the few European airlines to consistently report profits through the downturn. It delivered revenue of £570.5m for the 2009/10 financial year and earnings before tax, interest, depreciation, amortisation and aircraft rental charges of £90.9m."The company has come a long way in a short time, from its origins as a provincial carrier to being one of Europe's leading regional airlines," said Flybe chairman and chief executive Jim French.