- Wednesday, October 16, 2024
Shares in Athens International Airport saw a strong start to trading on Thursday, with prices surging 14% higher than their initial offering. This marks the most successful public float in Greece's recent history.
Last Friday, Athens International Airport shares were listed on the Athens Stock Exchange at €8.20 each. The Greek government had made the decision to sell a 30% stake in the country's major transport hub.
Since then, the stock has soared to €9.37 per share, exceeding the IPO price. Trading began on Thursday on Greece's main stock exchange.
This impressive performance can be attributed to the high levels of interest from investors, prompting the Hellenic Republic Asset Development Fund (HRADF) to set the IPO price at the top of its €7-€8.2 range. The HRADF was established by the Greek government in 2011 to privatize state-owned assets and attract investment to the country's economy.
The sale of the 30% stake in Greece's largest airport generated €785 million for the Greek state. The airport, built in preparation for the 2004 Athens Olympics, has become a significant asset in the country's infrastructure portfolio.
The successful IPO of Athens International Airport showcases Greece's growing appeal as an investment destination and highlights the promising financial opportunities emerging in the Greek market.
AviAlliance Increases Stake in Athens International Airport
German airport operator AviAlliance has exercised its right to purchase an additional 10% stake in Athens International Airport, solidifying its position as a major player in the transport hub. The company, which already owned a 40% stake in the airport, acquired the shares at a price of €9.758 per share.
Another significant stakeholder in the airport is the Copelouzos family, who own an additional 5% stake through their ownership of the Copelouzos Group infrastructure investment company. Known as one of Greece's wealthiest families, the Copelouzos have further strengthened the airport's ownership structure.
The successful initial public offering (IPO) of Athens International Airport in 2024 has now become the most lucrative IPO in Europe this year. It has raised a substantial amount of capital, surpassing the previous record set by Germany's Schott Pharma, which raised €935 million in September 2023.
This exceptional achievement also marks a turning point for the Greek economy, signaling its gradual recovery from the financial crash that severely impacted the country after 2009 and the subsequent eurozone crisis in 2012.
The airport IPO succeeds a lackluster year for public floats in 2023, and this trend is expected to continue into 2024 due to major interest rate hikes by central banks worldwide. Global IPOs only managed to raise $123.2 billion in 2023, compared to $184.3 billion in 2022 and a staggering $459.9 billion in 2021, as revealed by consultancy firm EY's statistics.
Athens International Airport's Ongoing Success
Since acquiring an additional stake in Athens International Airport, AviAlliance and the Copelouzos family have solidified their position as major stakeholders in the airport. This strategic move has enabled them to actively contribute to the continued success and growth of the transport hub.
A Turning Point for Greece's Economy
The triumph of Athens International Airport's IPO represents a significant milestone for Greece's economy. The country is demonstrating signs of recovery following the financial turmoil it faced over a decade ago. The successful IPO not only injects vital capital into Greece but also instills confidence in the economy and its potential for future growth.
Athens International Airport: A Thriving Hub for Travelers
Known for its efficient operations and excellent service, Athens International Airport has become a favored destination for millions of travelers. With 28 million passengers passing through its gates in 2023 alone, the airport holds a prominent position as the gateway to Greece. Its role in facilitating tourism and connecting visitors to various regions within the country is pivotal to Greece's hospitality industry.
Challenging Times for IPOs Worldwide
Despite Athens International Airport's IPO success, the global IPO market has experienced a notable decline. The year 2023 witnessed a decrease in capital raised through IPOs, and this trend is projected to persist into 2024. Factors such as interest rate hikes implemented by central banks worldwide have dampened investor enthusiasm. Expert analysis confirms a reduction in IPO funds from $184.3 billion in 2022 to a mere $123.2 billion in 2023, according to EY's data.
As Athens International Airport continues to thrive, it remains a shining example amidst a challenging IPO landscape.
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