Wizz Air Holdings Plc experienced a notable share price decline on Friday, sliding 10.2% after funds run by Indigo Partners LLC sold 10 million ordinary shares in the budget carrier via an accelerated bookbuild. The placement was priced at 1,250 pence per share and produced gross proceeds of approximately 125 million for the selling funds.
The placement was carried out as a fixed-price placement to institutional investors, with Morgan Stanley & Co. International Plc and J.P. Morgan Securities Plc acting as joint bookrunners. According to the terms disclosed, the trade was expected to settle on or around March 3, subject to customary closing conditions.
Indigo Partners indicated that the sale was prompted by certain investors in its funds wishing to realise their investment after an extended holding period. The sellers named in the transaction were Indigo Hungary LP and Indigo Maple Hill LP.
After the disposal, Indigo Hungary LP and Indigo Maple Hill LP will continue to hold 14,684,895 ordinary shares in Wizz Air, which represents about 14.2% of the company's issued ordinary share capital and voting rights. In addition to those ordinary shares, the sellers also retain convertible shares and convertible notes in Wizz Air; details on those instruments are set out in Wizz Air's 2025 Annual Report and Accounts and in subsequent regulatory filings.
It is important to note that no new shares were issued by Wizz Air as part of the transaction, and the airline itself will not receive any of the proceeds from the placement. The sale involved only shares held by the Indigo funds.
As part of the sale arrangement, Indigo Partners agreed to a 90-day restriction - a lock-up - under which it will not make additional sales of ordinary shares in Wizz Air without the consent of the joint bookrunners, subject to customary exceptions. The lock-up does, however, permit Indigo Partners to sell further shares to a private equity sponsor or strategic investor, provided that purchaser becomes subject to the same lock-up terms.
Context for markets
The transaction and the subsequent price movement were driven by a placement of existing shares held by Indigo-managed funds, rather than by a capital raise by Wizz Air. The sellers maintain a significant residual stake and hold other convertible instruments, and the sale included customary lock-up provisions and potential exceptions.