February 24, 2025
VistaJet and XO parent Vista Global wants to IPO in the next three years following an anticipated sale of convertible preference shares.
A Malaysia-based business journalist with Bloomberg reports that VistaJet and XO parent Vista Global is considering an IPO.
The Elffie Chew byline indicates that the possible IPO is tied to Vista Global closing an agreement to sell convertible preference shares.
9fin reported Vista Global was attempting to raise funds through a convertible preferred equity raise first in November and then last month.
The most recent 9fin report pegged the raise at “around $800 million.”
Bloomberg also identified the potential investor as a consortium led by Singapore-based RRJ Capital.
However, the numbers changed.
Bloomberg reports, “A consortium led by RRJ Capital is nearing an agreement to buy more than $600 million of convertible preference shares in VistaJet Group Holding SA…”
The Bloomberg piece continued, “[T]he investment firm seeks to tap demand for private jet chartering.”
Per ARGUS, private flight hours in the world’s biggest market, North America, were down 1.1% in 2024.
However, it was still the third-best year following the 2022 Covid-led peak and a dip in 2023.
Last week, WingX data showed private flying globally in 2025 had surged above 2022 record levels.
Over the past four weeks, charter and fractional operator departures were 7% ahead of 2024 and nearly 9% ahead of 2022.
ARGUS data from 2024 shows that of the 30 largest U.S. commercial private jet operators, NetJets and Flexjet, the two largest private jet flight providers, were the two biggest beneficiaries.
Last month, Saudi Arabia announced opening its domestic private jet charter market to foreign operators in May.
The General Aviation Manufacturers Association showed new private jet deliveries in 2024 as the industry’s second-best year in terms of units since 2010.
The Bloomberg article continues, “Members of the consortium would be able to convert their holdings into ordinary shares when VistaJet has an initial public offering, which is likely in the next three years.”
The primary use of the funds would be to cut debt, per Bloomberg.
The deal could be completed “as soon as in the coming weeks.”
However, Bloomberg warned that there was no guarantee that a deal would be reached.
According to the report, Vista Global had not decided on a venue for an IPO.
It’s not the first time Bloomberg has speculated on an IPO for Vista Global.
In June 2021, Bloomberg reported that the company was “in talks to go public through a merger with a special purpose acquisition company.”
That, of course, never took place.
Last week, the Financial Times continued its reporting on the financials for privately-held Vista Global that it reviewed.
The analysis found that after changing how it depreciates aircraft, the company moved to a $1 million profit on $2.1 billion in revenues through the first nine months of 2024.
Per the FT:
‘For 2023, Vista changed auditors to PwC and altered the conservative depreciation schedules that (chairman and majority owner Thomas) Flohr has said contributed to Vista’s (net) losses. After cutting $135 million from Vista’s depreciation expense, the airline made slightly improved net losses of $139 million for the year, and was judged a going concern.’
The FT said Vista Global had $62 million in cash at the end of Q3.
It also noted, “With available capacity on a $230 million revolving credit facility, Vista reported access to available funds of $105 million at the end of September.”
Vista Global’s finances have been under scrutiny since a Financial Times story in May 2023 highlighting its growing debt and deficit of cash to pre-payments for future flights in its jet card programs.
Flohr is believed to control around 85% of the company, answered on CNBC a few days later.
He said the company’s increasing debt came as it tripled its fleet.
Vista acquired operators XOJet, Jet Edge, Air Hamburg, Red Wing Aero, and Talon Air.
It also added brokers JetSmarter, Apollo Jets, and Camber.
At the same time, it was taking new Challenger 350s and Global 7500s from Bombardier.
After the initial FT report, Flohr argued to CNBC in May 2023 that the company had sufficient cash and that its net losses were due to how it depreciates aircraft.
He also said the company measures itself using Adjusted EBITDA.
According to the FT, Adjusted EBITDA increased by 7% to $600 million during the first three quarters of 2024.
Revenue also increased by 7% per the FT.
In April last year, Bloomberg reported that Flohr told his investors he could sell some of his stake to raise cash.
Vista Global did not immediately respond to comments about the Bloomberg report.
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