Norse Atlantic Airways Secures $55 Million Funding, Plans New Share Offering

Norse Atlantic Airways (N0), based in Oslo Gardermoen, has successfully raised NOK613 million kroner (USD55 million) in a recent private placement, surpassing its initial target of USD45 million for the autumn and winter seasons. The airline now plans to conduct a subsequent offering, seeking approval from shareholders for up to 9.1 million new shares.

The fundraise involves the issuance of 55,690,500 new shares in two tranches. Scorpio Holdings Limited, a Monaco-based entity specializing in tankers and offshore wind vessels, emerged as the largest shareholder with a 20.5% stake after committing to subscribe for approximately NOK150 million (USD13.5 million) worth of shares.

BT Larsen & Co Limited, a company representing founder and CEO Bjørn Tore Larsen, initially committed to subscribing for NOK150 million but was scaled back to its pro-rata share of the expanded placement due to strong demand. Larsen’s company ultimately secured around NOK122 million (USD10.95 million) worth of shares.

In response to the heightened interest, the board of Norse Atlantic proposed a repair issue for shareholders who did not participate in the initial offering. This secondary offering comprises 9.1 million shares, priced at NOK11.00 (USD0.9872) per share, the same as in the private placement.

Following these developments, Norse Atlantic’s CEO, Bjørn Tore Larsen, revealed on November 8 to Bloomberg News that the airline had been approached by two larger carriers expressing interest in acquiring a minority stake. Larsen highlighted the potential benefits of such alliances, emphasizing cost savings, increased revenue, and access to the partner’s extensive network. While he did not disclose the identity of the interested parties, he categorized one as a major airline and the other as medium-sized.