SKYWEST Limited’s plans for an ASX-listing have been buoyed by interest in the regional airline’s $2.67 million convertible note issue.
The offer is designed to finance the restructuring of Skywest Airlines, following its purchase from Ansett administrators last year.
“Skywest is maintaining its listing aspirations,” Skywest CEO Scott Henderson said, following “enormous” interest in the lead-up to the official issue launch earlier this week.
But first, the company needed to maintain good trading performances over the next year, after making a lot of changes during tough times.
Subsequently, Skywest is expecting to report monthly profits for May and June.
The company is terminating its Laverton services this week, but is about to submit a tender to retain a Shark Bay route, possibly teaming up with a potential Kalbarri operator.
Skywest had traditionally focused on business and government travel, Mr Henderson said, but was now taking on extra staff to enhance the business tourism and regional MICE markets.
Albany was one example of a regional town with a proposal for a convention centre, and also interested in what Skywest could offer in support, Mr Henderson said.
Paterson Ord Minnett executive director, head of corporate finance, Aaron Constantine said the offer would appeal to both smaller and professional investors.
Up to 27.8 million notes and free attaching options will be issued in the offer, at 15 cents per note.
Yield is 10.5 per cent, paid quarterly.
With an oversubscription allowance, the offer could raise up to $4.17 million.
Part of this capital will be used to refinance aircraft.
Skywest has forecast a $2.2 million post-tax loss for 2002-03, but is also predicting a 2003-04 profit of $2.4 million.
Paterson Ord Minnett is lead manager to Skywest’s issue.