The Irish aircraft leasing company priced its initial public offering below the expected range of $21 to $23, ultimately landing at $20 per share. The stock continued to trade lower, finishing at $18.43.
The price action isn't reflective of investors' feelings toward Avolon, CEO Domhnal Slattery claimed. Instead, it's the overall "choppiness" in the market that has investors thinking twice about the stock right now, he told TheStreet TV.
He said Avolon is a great company, with strong earnings and an optimistic long-term outlook because as oil continues to move lower, airline companies become more confident. As confidence rises, so does demand for new aircraft.
He said investors can also think of Avolon a hedge against fuel costs because it has the youngest and most fuel-efficient fleet of planes in the business.
He sees "explosive" demand for the next 10 years in Asia, particularly Malaysia and Indonesia, where a growing global middle class will also help fuel future demand of flights, and therefore additional aircraft.
-- Written by Bret Kenwell