Auckland Airport institutions snap up new shares
Auckland Airport institutional shareholders snap up discounted stock
Jan. 29 (BusinessWire) - Auckland International Airport said more than 99% of its institutional shareholders elected to take up discounted stock in its 1-for16 offer that is raising funds to pay for its foray into northern Queensland airports.
The institutional entitlement offer raised $69.4 million, reducing the amount of stock that will be available to other institutions, the company said. The targeted total to be raised is NZ$126.4 million. Retail investors will be offered shares on the same basis, $1.65 apiece, next week. It last traded at $1.92 on Jan. 26.
Shares of the nation’s busiest gateway are halted for the capital raising and are likely to remain so until Feb. 2.
Chairman Tony Frankham said the success of the institutional component of the offer shows there’s strong support for the company.
Auckland Airport bought into the North Queensland airports earlier this month as it seeks to secure more tourists from Asia and ramp up New Zealand travel to Australia’s popular tropical region. Goldman Sachs JBWere downgraded its earnings estimate for the company by 5% and called the initiative an “expensive experiment.”
The offer is fully underwritten by Credit Suisse (Australia) and First NZ Capital.