PLAY Hits Funding Target with ISK 4 Billion in Share Commitments Skip to content
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PLAY Hits Funding Target with ISK 4 Billion in Share Commitments

The Icelandic airline PLAY has secured share subscription commitments totalling ISK 4 billion ($29 million / €27 million), meeting its target before the annual general meeting scheduled for March 21, 2024. Additionally, the airline is advancing its listing to the Nasdaq Main Market in Iceland and planning a public offering to further bolster its capital.

Commitments pending approval at annual general meeting

In a press release yesterday, the Icelandic airline PLAY announced that it had secured new share subscription commitments totalling ISK 1.4 billion ($10 million / €9 million), bringing the total commitments to approximately ISK 4 billion ($29 million / €27 million). This achievement marks the fulfilment of the company’s target ahead of its annual general meeting, which is scheduled for March 21, 2024.

(A share subscription commitment means that investors have pledged or committed to buying a specific number of shares from the airline at a predetermined price before those shares are officially issued or made available to the public.)

The additional funds raised through these commitments come on the heels of previously announced commitments worth around ISK 2.6 billion ($19 million / €18 million). The final approval for increasing the company’s equity by this amount is now pending before the shareholders at the upcoming annual general meeting. The shares have been priced at a subscription rate of 4.5 ISK each.

To further enhance its capital base, PLAY’s board of directors is set to propose an additional public offering aimed at raising the equivalent of ISK 1.2 billion ($9 million / €8 million), also at a subscription price of 4.5 ISK per share. This offering will prioritise current shareholders in the event of an oversubscription. Notably, this forthcoming offering is exempt from the standard requirement of publishing a prospectus.

Listing upgraded to the Nasdaq Main Market

Amid these developments, the announcement also states that PLAY is making headway in its plans to upgrade its listing to the Nasdaq Main Market in Iceland, with expectations of concluding the process by the end of the second quarter. Birgir Jónsson, CEO of Fly Play hf., expressed his enthusiasm for the investor confidence shown in the airline’s equity raise.

“It has been a true pleasure to witness the positive reaction that investors have shown our equity raise. With the commitments we have now secured, in addition to the commitments from our largest shareholders already announced, PLAY has now secured new equity in the amount of ISK 4 billion. This number may be further increased following the public offering that is planned following the authorization from the company’s Annual General Meeting in March.

This equity raise substantially strengthens the company’s financial position and allows it to execute exciting growth opportunities and/or handle unexpected events. This is an important milestone for our good company and its employees. It is fascinating to experience how professionalism among the company employees is further enhanced. The group’s ambition is really special, and it is a privilege to work with this powerful group of PLAYers.”

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