Surf Air Mobility, a regional air travel company focused on electrified aircraft, is expected to begin trading on the NYSE on Tuesday, July 11, 2023, according to an amendment filed with the SEC on Thursday. In its latest filing, the company also disclosed the number of shares of common stock to be sold by existing shareholders.
The Registered Stockholders plan to sell up to 18.8 million shares. The Registered Stockholders represent all major existing shareholders, including management. In addition to the shares being registered by insiders, the company is also registering shares to be distributed to existing shareholders in connection with its reorganization and acquisition of Southern Airways.
During the second quarter of 2023 (through June 20), Surf Air sold shares in a private transaction at $11.86 per share. At that price, it would command a fully diluted market value of $597 million.
Surf Air provides a regional air mobility platform with scheduled routes and on-demand charter flights operated by third parties. It intends to develop powertrain technology with its commercial partners to electrify existing fleets, which it believes will substantially reduce the cost and environmental impact of regional flying. In May 2022, the company agreed to merge with Southern Airways to expand its footprint; Surf Air and Southern together served over 99,000 passengers across 44 cities with over 18,000 departures in the 1Q23.
Surf Air Mobility is set to be the first direct listing of 2023, following early-stage cannabis company Bright Green (BGXX; -88% from reference price) in May 2022.
Surf Air Mobility was founded in 2011 and booked $21 million in revenue for the 12 months ended March 31, 2023. It plans to list on the NYSE under the symbol SRFM. As a direct listing without a firm commitment offering, there are no underwriters on the deal; instead, Morgan Stanley, Canaccord Genuity, Moelis & Company, Baird, and Sanford Bernstein will serve as financial advisors.
