Pogo Sets Possible Price Parameters for IPO
Pogo Jet this week filed an amendment to its S-1 registration statement for an initial public offering of stock to finance the company’s entry into the very light jet air-taxi market. The filing indicates that Pogo expects to sell seven million shares of common stock at $12.50 to $16.50 per share, which would raise $87.5 to $115.5 million. Pogo is proposing to trade on the Nasdaq exchange under the POGO symbol and plans to use the OpenIPO system, where share price and allocation is determined by an auction process with a minimum bid of 100 shares. Net proceeds from the IPO are estimated at $94.6 million. Pogo will use $39.4 million to fund a portion of VLJ purchase deposits, progress and delivery payments; $11.8 million for capital expenditures such as facilities; and $43.4 million for operating losses, working capital and general purposes. Pogo’s initial service area will be 400 airports within a 600-mile radius of New York City using a fleet of Eclipse 500 VLJs. The IPO prospectus states that Pogo plans to start service in the second quarter of next year, and the fleet should reach 15 Eclipse 500s by the end of 2009 and 115 jets by the second quarter of 2012. Pogo executive vice president of corporate development Cameron Burr told AIN that he could not comment on whether Pogo has placed an order with Eclipse Aviation, citing regulatory constraints.