Flybe IPO set at 295p a share

Budget airline Flybe priced its London listing at 295 pence per share, the top of its guidance range, raising up to £66m for Europe's largest regional carrier.

Flybe sold 24.4 million shares in the offering, including an overallotment option, representing around a 30 percent stake in the company and valuing the airline at £215m.

The company, which focuses on niche UK routes, plans to use half the funds from the share sale to fund the expansion of its aircraft fleet and the other half to strengthen its cash position to allow it pursue other growth opportunities, such as acquisitions.

Flybe had initially offered its shares at a price range of 285 pence to 385 pence, but lowered the top end of price guidance to 295 pence on Thursday, the final day of bookbuild.