Auckland International Airport Ltd’s $1 billion share placement yesterday was fully subscribed at $4.66/share, 16c above the bookbuild floor price.
The airport company’s next financial move is to a $200 million share purchase plan, which will be at the placement price.
Chief executive Adrian Littlewood said the fully underwritten placement attracted bids well in excess of $1 billion from existing institutional & other select local & offshore investors. The company stuck by existing institutional shareholders, ensuring they got at least their pro rata allocation of new shares.
The placement price, determined in the bookbuild, was at a 7.5% discount to the last close price of $5.04, last Friday, and a discount of 9.5% to the 5-day volume-weighted average price of $5.15.
Mr Littlewood said: “Auckland Airport has been materially impacted by the outbreak of Covid-19, with a rapid decline in international & domestic passenger numbers. 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 & being well positioned for recovery.”
Settlement of the placement is expected to occur next Tuesday for the ASX & Wednesday for NZX. The new shares will rank equally with Auckland Airport’s existing ordinary shares.
7 April 2020: Auckland Airport seeks $1.2 billion, slashes capex
27 March 2020: Airport defers $2 billion of projects
18 March 2020: Air NZ halt share trading, Auckland Airport suspends guidance
Attribution: Company release.