Update Apr 17 11:20am: Confirmed, RBC Capital Markets is an underwriter

The Canadian airline company, Porter Inc., confirmed today the company plans to go public with an initial public offering (IPO) to raise capital.

The company declined to answer when it could happen, nor any other information including who the underwriters would be and what type of underwriting would be used such as a firm commitment underwriting.

The regional aviation company currently flies planes from Toronto’s downtown island airport to destinations in both Canada and the United States.

The company continues to experience strong growth as more and more people are using the service to also take advantage of its lower offered rates compared to competitors like Air Canada. The company currently operates eighteen aircraft, compared to starting with only two planes in its first fiscal year in 2006. The company also recently added more destinations.

Porter says the capital it raises from the equity offering would be used for working capital and to acquire additional equipment and aircraft to meet growing demand.

There is currently no indication as to what price range the stock will firstly be offered, but more information will become available when the underwriters become known. We can likely expect both American and Canadian investment banks to participate in the underwriting.

Investors are currently cautious when it comes to investing in airline stocks because of continued volatility in crude prices, and the expected upward pressure on the price of crude as the global economy begins to recover.

Porter is funded by various investors, including General Electric Asset Management, EdgeStone Capital Partners, among other investors.