Institutions pay $1.91 for Auckland Airport stock
Institutions pay $1.91 for Auckland Airport stock as shareholders leap at offer
Jan. 29 (BusinessWire) – Institutions will pay $1.91 a share for Auckland International Airport, close to the market price, after existing shareholders rushed to buy discounted stock in its 1-for16 offer.
The institutional bookbuild is part of the airport’s plan to raise $126.4 million to pay for its acquisition of a stake in northern Queensland airports.
The bookbuild “was well supported, attracting bids from both new and existing New Zealand, Australian and international investors,” the company said in a statement today.
Shares of Auckland Airport traded at $1.92 this week before being halted for the capital raising. They are set to resume trading next Tuesday.
Earlier today, the airport said more than 99% of its institutional shareholders elected to take up the offer of shares at $1.65 each, raising $69.4 million toward its target. Retail investors will be offered the same terms.
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.”