Two charts that show why Wizz Air scrapped its IPO

IPO WATCH: The budget airline said this morning it has cancelled plans for a 160m pound flotation. Hardly surprising, considering how other airline shares are doing.

by Emma Haslett
Last Updated: 04 Feb 2015

Very few eyebrows were raised this morning when budget airline Wizz Air cancelled plans to IPO, citing ‘market volatility’ as a reason. The Hungarian airline had been planning €200m (£160m) listing to strengthen its balance sheet and fund growth.

Why bother going through all the palaver and expense of due diligence if you’re going to scrap the listing? Easy: over the past fortnight, airline shares have encountered more turbulence than a Learjet in a hurricane.

Here’s a look at how airline shares have fared over the past two weeks (blue is Ryanair, red is EasyJet, green is Norwegian Air Shuttle and browny gold is British Airways parent company International Airlines Group):

Source: Yahoo Finance

And here’s how the FTSE 250 – the index Wizz Air would trade on – fared last week:

Source: Yahoo Finance

Not an environment any new listing wants to find itself in.  

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