Apollo-backed low-cost Sun Country Airlines files for IPO

Minneapolis-based Sun Country Airlines Holdings Inc. has filed for an initial public offering, according to a filing Monday. Sun Country, backed by private-equity giant Apollo Global Management Inc. APO, +0.49%, is seeking to sell $100 million worth of shares, although that figure is likely a placeholder used to calculate fees. Underwriters include Barclays, Morgan Stanley, and Deutsche Bank. Sun Country was acquired by Apollo in 2018. “Since the acquisition, our business has been transformed under a new management team of seasoned professionals who have a strong combination of low-cost and legacy network airline experience,” the company said in the filing. Sun Country would tap capital markets amid low air travel demand and restrictions due to the COVID-19 pandemic. In the filing, the company said it did experience a “significant decline” in demand because of the pandemic, but its “diversified and flexible business model” allowed it to mitigate the impact of COVID-19 “better than any other large U.S. passenger airline.” Sun Country will list its shares on Nasdaq under the symbol SNCY. The company disclosed operating revenue of $293.7 million in the nine months ended September 2020, from $537.5 million in the year-ago period. Per-share earnings fell to $1.62 from $16.22 in the January-September 2019 period.

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