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Listing on a jet plane: Air travel company Surf Air Mobility files for a direct listing on the NYSE

June 5, 2023

Surf Air Mobility, a regional air travel company focused on electrified aircraft, filed on Monday to register its shares with the SEC and complete a direct listing on the NYSE. The Class A shares listed will be sold by existing shareholders; Surf Air Mobility will not raise new capital in its listing. The company did not disclose the initial tradable float, a reference price, or anticipated timing of its listing.

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 2), an as-converted 254 thousand shares were sold by Surf Air in a private transaction at $11.82 per share; if the company listed its shares at that price, it would command a basic market value of $574 million.

Surf Air Mobility had previously planned to go public via SPAC merger, but the deal was terminated in November 2022.

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.

The Hawthorne, CA-based company 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. Surf Air Mobility filed confidentially on November 16, 2022. As a direct listing without a firm commitment offering, there are no underwriters on the deal; instead, Morgan Stanley will serve as financial advisor.