Latvia has reached out to neighbouring countries about investing in Air Baltic Corp AS, Bloomberg reported, after the state-owned airline dismissed its chief executive officer ahead of plans for an initial public offering. The Latvian State owns 97.97% of airBaltic shares, while the financial investor, Danish businessman Lars Thuesen’s company, Aircraft Leasing 1, – 2.03%.

The airline said last September that a share sale could raise as much as €300 million. It’s a project that CEO Martin Gauss had been working on, but he is leaving following a vote of no confidence from the Latvian state.

The Latvian airline, which also recently replaced its board, has been looking to list in Riga and potentially London as soon as the second quarter. The uncertainty has led to a selloff in Air Baltic’s debt amid global market turmoil.

Latvia is restricted by EU rules in giving aid to Air Baltic outside of buying shares in an IPO alongside other investors. Earlier this year, Deutsche Lufthansa AG agreed to acquire a convertible share representing a 10% holding in Air Baltic for €14 million. The deal is expected to close in the second quarter. Lufthansa will then be able to exchange its shares into ordinary stock at the time of any IPO.

Last July, as regards the public interest shown by Lithuania and Estonia in airBaltic shares, Riga noted that no bilateral or trilateral negotiations with these partners are currently underway, leaving an opportunity to any investor, both public and private, investment funds and others, to get involved in the process.