Irish plane leasing company Avolon's £1bn value
Dublin-based aircraft-leasing firm Avolon, which was established by Co Clare entrepreneur Domhnal Slattery, could be worth as much as $2bn (£1.2bn) if it floats on the stockmarket, according to an analysis by Bloomberg.
Last month, it emerged that Avolon had hired JP Morgan Chase and Morgan Stanley to explore a possible stockmarket listing or a sale of the business. Avolon is owned by private-equity firms including Oak Hill Capital Partners, Cinven and CVC Capital Partners.
A listing would see it make a stockmarket debut in the United States.
The Government of Singapore Investment Corporation is also an investor in the firm.
Avolon has the youngest fleet of any global aircraft leasing firm and has 47 customers around the world.
At the end of the first quarter of this year, it had 115 aircraft in service with clients and a total committed fleet, which includes orders, of 202 aircraft.
An analysis by Bloomberg reckons Avolon could be valued at between $1.5bn (£0.9bn) and $2bn based on generic fleet values, a typical capital structure and market valuations. Another Ireland-based aircraft-leasing firm, AWAS, could be valued at $3bn (£1.8bn), according to Bloomberg.
AWAS and Avolon's narrow-body fleets are 30% to 35% weighted to Asia, the most of any region, according to the Bloomberg analysis. "Customer exposures are critical in Asia, with exposure to fragmented markets such as southeast Asia the biggest risk," it added.