Latvia’s national air carrier, airBaltic, may gain a new strategic investor either before or after the company’s planned IPO, according to CEO Martin Gauss, LETA reports. The company expects to announce the IPO in the second half of 2024 or in 2025. The goal is to raise EUR 300mn on the stock exchange, ERR reports. Gauss noted that the money which the Latvian state has invested in airBaltic does not represent the actual value of the company. Equity reflects how much investors are prepared to pay for the company, he explained. “When you reduce the share capital, you do not reduce the value,” Gauss pointed out. To demonstrate that airBaltic is worth more than its current equity of EUR 100mn, the company needs to prove its value to the potential investor, and this does not depend on cash, the CEO asserted.
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