Wednesday, 17 Jul 2024

Former Ryanair CFO expected to raise $500m through IPO and debt for new leasing firm

A new aircraft-leasing fund that will be floated on the London Stock Exchange this month by a former Ryanair chief financial officer will be valued at around $250m (€220.8m).

Howard Millar has teamed up with his fellow ex-Stellwagen executives Ed Coughlan and Ed Hansom to establish the Sirius Aircraft Leasing Fund, which will predominantly invest in used single-aisle aircraft.

A total of 250 million ordinary shares, valued at $1 each, will be listed during its initial public offering.

The Guernsey-based company has sought to raise enough working capital for “at least the next 12 months”, according to its prospectus.

The leasing firm has targeted a maximum issuing of 300 million shares. The fund will be entirely owned by shareholders. Sirius is expected to raise a further $250m in debt, giving it buying power of up to $500m to invest in its fleet.

Sirius has targeted an annualised dividend yield of 6pc for investors within the first year, rising to a target of 8pc in each financial year thereafter. The placing programme for shares will open on Wednesday, November 21. Sirius is being advised by Liberum Capital and Davy.

It is understood there are a number of UK-based pension funds that have registered an interest in investing in the company when it floats.

In the prospectus, Sirius identified its typical investor as “institutional and professionally advised”.Sirius identified terrorist attacks, civil unrest, and a negative change in the economic conditions in Asia and emerging markets as significant threats to its business model.

The company will be based in Guernsey, just off the coast of France, but its investment adviser will be based in Dublin.

Under current tax law there is no liability to capital gains tax, wealth tax, capital transfer tax or estate or inheritance tax on the issue, transfer or realisation of shares.

No reference was made in the 181-page document to outstanding litigation from aviation leasing company Stellwagen.

The US-Irish company has alleged the trio used company secrets to establish another aviation-leasing company. That claim is denied by all three men.

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