May 2002
JetBlue shakes off airline gloom in stunning take-off
Issuer: JetBlue Airways CorpAmount: $158.4 millionLaunched: April 11 2002Lead manager: Morgan Stanley
The stunning Nasdaq IPO of low-fare airline JetBlue Airways
Corp on April 11 generated extraordinary excitement in an industry
plagued by losses and retrenchment, and in the sleepy IPO market.
The IPO, for which Morgan Stanley was the sole bookrunner,
consisted of an offering of 5.87 million shares, equivalent to
about 14% of the company, and raised $158.4 million. It priced at
$27, outside the expected $25 to $26 price range, which had already
been increased from an initial range of $22 to $24. The offering
attracted an incredible $3.9 billion-worth of demand, outstripping
supply by about 26 times.
The shares rose by 50% within the first half-hour and closed up
$18 at $45, a one-day increase of 66.7%. The rise was the most
substantial one-day increase since Simplex Solutions' 77% rise
following its debut in May last year, and compares with an average
first-day trading gain of less than...
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