Despite weak market conditions and uncertain demand, Porter Aviation Holdings Inc. wants to go ahead with its 120-million Initial Public Offering by reducing its stock price. Its shares will be priced at $5.50 and it will sell 21.82 million shares or a 35.3% stake in the Company.

It had earlier planned to offer the share for between $6 and $7 but it got delayed. Its IPO is now slated to close on or about June 8. It will mean that Porter has a total stock market value of $339-million, based on $5.50 a share. The Company had recently announced that it had $294-million in long-term debt.

The money generated from the IPO will for paying a loan of $10.7-million while $11 million will go towards completing terminal expansion at Billy Bishop Toronto City Airport and to purchase new Bombardier Q400 planes.

Market experts feel that even though demand is weak, the low price of the issue will ensure that the Company is able to raise the $120-million originally targeted by it.

The Company launched operations in October, 2006 and has been enjoying a monopoly on commercial flights at Billy Bishop, located on an island off downtown Toronto. But Air Canada Jazz will start services from the airport by the end of this year.