Last week marked the first anniversary of the airline’s debut on the stockmarket. The shares were floated at 295p and are now trading at 56p.
There were some (well, me at least) who felt the offer price was high and the prospectus somewhat optimistic. Unfortunately, the shares quickly began a long descent based on trading updates which were markedly different in tone to the prospectus just a few months before.
In the same period, easyJet’s shares have gone from 420p to 380p.
Who says bankers are useless and over-paid? Merrill Lynch did a fantastic job for the owners of flybe in persuading the market it was worth 295p a share. They are surely worth every penny of their substantial fee.
On the other hand, I can’t help but think flybe might find it difficult to attract any further funds from the City.