Surf Air Mobility Inc., (SRFM) a regional air transport firm that focuses on electrified aircraft, has made the choice to go public by way of a direct listing and has stated its intention to do so. The date of July 11 has been selected as the firm’s direct listing date on the New York Stock Exchange (NYSE). The company was established in 2011 and has its headquarters in Hawthorne, California, in the United States. SRFM will be used as the ticker symbol for the firm.
The initial public offering (IPO) paperwork deadline for the firm was set for June 5th, 2023, and the indicated price range for the sale was $11.86. It is important to note that there will be an offering of 18.8 million shares for Surf Air IPO; however, the value of the sale in terms of dollars was not indicated in the paperwork. Major financial institutions such as Morgan Stanley, Canaccord Genuity, Moelis & Company, Baird, and Sanford Bernstein are participating as underwriters for the initial public offering (IPO).
Surf Air IPO Overview
| Proposed Symbol | SRFM |
|---|---|
| Company Name | SURF AIR MOBILITY INC. |
| Exchange | NYSE |
| Share Price | — |
| Employees | 746 (as of 03/31/2023) |
| Status | Filed |
| Shares Offered | 38135330 |
| Offer Amount | $100,000,000 |
| Shares Over Allowed | — |
| Total Offering Expense | $16,501,020.00 |
| Shareholder Shares Offered | — |
| Shares Outstanding | — |
| Lockup Period (days) | 180 |
| Lockup Expiration | — |
| Quiet Period Expiration | — |
The goal of Surf Air transportation is to create a regional air transportation ecosystem with the intention of connecting communities all over the world in an environmentally responsible manner. The firm intends to hasten the implementation of environmentally friendly flying practices by utilising the combined resources of Surf Air and Southern, both of which it bought in 2021.
In collaboration with its many commercial partners, the company is working to modernise its existing fleets through the development of hybrid-electric and fully-electric powertrain technologies. The corporation is of the opinion that, as a result of their efforts, there will be a large decrease in both the cost and the impact of regional flying on the environment, and that this reduction will be attainable by the end of the decade.
In order to expedite the execution of its strategic strategy, the firm intends to transform itself into a publicly traded corporation and pursue more effective means of gaining access to additional growth funds. By linking underutilised regional airports and private terminals, Surf Air is extending the category of regional air travel to create a “shared private” customer experience and a high-frequency “commercial-like” air service, using small turboprop aircraft. This is accomplished by creating a “shared private” customer experience.
SURF AIR MOBILITY INC. IPO Details
At this time, the firm offers a regional air mobility platform that includes both regularly scheduled routes and on-demand charter flights that are operated by other companies. Starting with a hybrid-electric and a fully-electric variant of the Cessna Grand Caravan EX, which is one of the most prolific families of aircraft in the single-engine turboprop category, with approximately 3,000 aircraft in use worldwide, Surf Air intends to develop powertrain technology with its commercial partners in order to electrify existing fleets. This will begin with a fully-electric variant of the Cessna Grand Caravan EX.
The income that a division of Surf Air Mobility brought in increased by about 72% in 2022, hitting $20.27 million for the year that ended on December 31 after having been $11.8 million the previous year. The revenue earned by Southern Airways Corporation during the three months that concluded on March 31 was $22.67 million, which is an increase over the company’s previous year’s total of $16.72 million. As nations compete to reduce emissions and Wall Street works to reduce its own carbon footprint, the interest in firms that manufacture electric vehicles is at an all-time high; thus, the timing is ideal for Surf Air Mobility.
In contrast to a conventional initial public offering (IPO), a direct listing does not involve the creation of any new shares. By using this method, company insiders are able to sell their shares immediately and without the assistance of conventional underwriters. In 2022, Surf Air Mobility called off its $1.42 billion merger deal with a corporation called Tuscan Holdings Corp II, which would have netted the company $467 million in cash gains. The transaction had been scheduled to take place in 2023. It would imply that this direct listing is the next strategic move that they will make towards collecting money for their development.
In conclusion, the direct listing of Surf Air Mobility on the New York Stock Exchange (NYSE) is a key milestone for the company in its objective to revolutionise regional air transport with an emphasis on sustainability and electrification. This move was taken by the firm. The listing may be able to get the required funds for the firm, allowing it to speed up its development goals and increase the scope of its services.