Would you invest in an Air Navigation Service Provider (ANSP)? Their reputation for inefficiency, government influence and resistance to change would suggest your money might do better stored under the mattress. However, the successful flotation of Italy’s ANSP, ENAV, indicates that many investors see some potential in air traffic management (ATM).
In July, the Italian government offered up 47% of ENAV to potential investors. 10% of these shares were reserved for ENAV employees and individual investors, with the remainder offered to large investors such as hedge funds, banks and pension funds. The Italian government maintains its influence, however, through its majority stake.
ENAV shares have proved to be a popular investment. At the time of flotation, demand for ENAV shares outstripped supply eight times. Since then, the share price has remained above the initial offering of €3.30 a share.
While it is still early days, ENAV could provide a useful case study for other governments, especially those with large public debts.