• Institutional investors subscribed to buy 300 million shares at a sales value of ISK 8.1 billion. Oversubscription from institutional investors was 173%.
• Foreign institutional investors bought 43% of the shares originally offered to institutional investors and now own 4.7% of the company.
• 669 of the company’s employees are now among its shareholders owning more than 6% of the company´s shares.
• Shares at a sales value of ISK 4,995,000,000 were offered in total. Investors applied to buy shares at a sales value of ISK 10.3 billion in total which means that oversubscription is 105%. 
• Trading with the company´s shares, which will have the ticker symbol ICEAIR, will start on the Icelandic Stock Exchange (ICEX) Thursday, 14 December 2006.

The Share Offering of Icelandair Group Holding hf. was completed yesterday, 4 December 2006, at 7pm. A total of 185,000,000 shares at the price of ISK 27.0 per share were offered or a total of ISK 4,995,000,000 at sales value or 18.5% of the company’s shares. In total, investors applied to buy 380 million shares, which means that oversubscription is 105%.

In the run-up to the Share Offering, 180 million shares were sold or 18% of the company. Before that, four groups of investors had bought 63.5% in the company. After the Share Offering now, where 18.5% of the company’s shares were sold, 100% of shares in Icelandair Group Holding hf. are therefore sold and the number of shareholders in the company is over 1300.

Managers and employees of Icelandair Group Holding hf. and subsidiaries, now own over 6% share in the company. A total of 35 million shares were reserved in the employee phase of the offering, thus allowing for all employees to buy the maximum Share Offered. A total of 669 employees bought shares in this phase of the offering.  The shares that were not sold in this phase will be used to meet excess demand in the institutional investor phase, as indicated in the company’s prospectus.

In the offering to institutional investors, 110,000,000 shares were for sale or a total of ISK 2,970,000,000 at sales value. In total, institutional investors subscribed to buy 300 million shares for ISK 8.1 billion at sales value. Foreign institutional investors bought about 43% of the shares originally offered to institutional investors and therefore own 4.7% of Icelandair Group Holding hf. after the offering. Glitnir Markets in Reykjavík, Oslo and Stockholm all contributed to get these results.

In the offering to the general public, 40,000,000 shares were for sale or a total of ISK 1,080,000 at sales value. In total, subscriptions for ISK 1.935 million at sales value were received, representing 80% excess demand. In accordance with ICEAIR’s prospectus, subscriptions were subject to reductions, which resulted in investors receiving 55.8% of the amount they applied for.

The company will now fulfil requirements for the distribution and number of shareholders which are a precondition for a listing on ICEX. The due date of payment slips is 11 December 2006 and trading is expected to start Thursday, 14 December 2006.

Jón Karl Ólafsson, CEO of Icelandair Group: “We are very pleased with the extensive participation. Icelandair Groups is a company which through its transportation and tourism services plays an important role in Icelandic society and it is a great strength for the company to sense the interest and trust which appears in the sale of the company and its listing in the market. I very much look forward to the task of building up the company with new owners, not least because among the new owners are many colleagues who bought shares in the company.”

Einar Örn Ólafsson, Executive Director at Glitnir Corporate Finance is very pleased with the outcome of the Share Offering. “Icelandair is a solid and well run company and it has been very enjoyable to experience investors’ interest in the company. It is particularly pleasant to see foreign players take such active part in the offering, this demonstrating their faith in the company and Icelandair’s firm position as a brand name. Exciting times are ahead for Icelandair which has presented ambitious goals for growth for 2007.”

Glitnir PDF analysis of the share offering