Norse Atlantic raises $30m for UK operation

Norse Atlantic Airways has raised NK300m ($30 million) via a private share placement to help launch its UK subsidiary next year.

The Norwegian low-cost transatlantic carrier said the placement of 120 million new ordinary shares was one-and-a-half times oversubscribed, “clearly demonstrating a strong confidence by investors” in its business strategy and model.

The net proceeds will be used to maintain a “targeted cash buffer” following a requirement from UK air authorities to invest $46 million for use only by the company’s UK subsidiary, Norse Atlantic UK, to enable Norse to operate and increase the number of flights operating from Gatwick to the US, as well as for general corporate purposes.

Bjorn Tore Larsen, founder and chief executive of Norse Atlantic, said: “This successful equity raise will allow Norse Atlantic to build on its already strong financial base. We were already in a much stronger position strategically and financially than many other airlines and we now look forward to growing from strength to strength as we look ahead to our UK summer 2023 operations and wider route network.

“We are proud that the investor market has shown such strong confidence in our strategy and for the support that we have received.

“We will continue to focus on profitable point-to-point routes, delivering an excellent customer experience and offering the best value in the industry.”

Founded in March 2021, the airline’s first flight took off from Oslo to New York on June 14, and its inaugural flight between Gatwick and New York was in August.

Its subsidiary will start operating transatlantic flights from the UK in 2023 and tickets went on sale earlier this month.

An extraordinary general meeting will be held on December 9 to approve the placement and subsequently another 60 million shares will be offered.

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