8th April 2020 By Staff Reporter | news@tourismticker.com | @tourismticker
Auckland International Airport Limited has successfully completed its placement of $1bn worth of shares.
AIAL reported that the placement was strongly supported and attracted bids well over the offer from existing institutional and other select investors in local and offshore markets.
The placement was fully subscribed at $4.66 a share, a discount of 7.5% to the last price of $5.04 on April 3, but well shy of its mid-January price of $9.
The shares were trading at $5.20 after the placement announcement.
Chief executive Adrian Littlewood said he was pleased with the level of support from investors, which would help to strengthen Auckland Airport’s balance sheet during the current period of strict border controls and significantly reduced passenger numbers.
“Auckland Airport has been materially affected by the outbreak of Covid-19 with a rapid decline in international and domestic passenger numbers,” he said.
“We remain optimistic about our long-term future, but the near term trading conditions remain uncertain and like many organisations we will continue to face challenges. This placement is another significant step towards securing our future and being well-positioned for recovery.”
Auckland Airport is also undertaking a $200m share purchase plan to other shareholders.
The placement was underwritten by Jarden Partners, Credit Suisse, and Citigroup Global Markets.
