JetBlue Airways IPO
• In April 2000, JetBlue first started in New York City’s John F. Kennedy Airport.
• Even after the 2001 terrorist attacks, company remained profitable and was growing aggressively.
• To support their growth and offset portfolio losses by their venture capital investors, management was ready to raise additional capital through a public equity offering.
• With representatives of co-lead manager Morgan Stanley and the JetBlue board was trying to come to an agreement on the offering price of the new shares. The initial price range was from $22 to $24. Facing sizable excess demand for the 5.5 million shares planned in the IPO, management had recently filed an increase in the offering price range to $25 to $26. NASDAQ was prepared for JBLU (the company’s ticker symbol) to begin trading on the exchange.
JetBlue Airways
• Ex-Continental Airlines vice-president, David Barger, had agreed to become the new JetBlue president and CEO.
• John Owen had left his position as executive vice president and former treasurer for Southwest Airlines to fill the CFO role at JetBlue.
• In 1999, David Neeleman, announced to launch a new airline. He had received strong support for his business plan from the venture capital community. He had quickly raised $130 million in funding from such high profile firms such as Weston Presidio Capital, Chase Capital Partners, and George Soros’s private equity firm, and Quantum Industrial Partners.
• JetBlue’s early success was often attributed to Neeleman’s extensive experience with airline startups. As a University of Utah student in his early 20’s, he began man ...