Auckland International Airport Ltd (ASX:AIA) has launched a non-underwritten retail offer to the tune of $200 million as part of an equity raising campaign announced earlier this week – which itself had begun with a $1.2 billion placement of new shares to new and existing investors in New Zealand, Australia and elsewhere.
The placement – which priced shares at $6.95 each – was announced as having been successful the very next day, given strong support.
According to the retail offer, eligible investors will be able to apply for up to NZ$150,000/A$45,000 worth of AIA shares, with the closing date set at October 4.
Chair of AIA Dr Patrick Strange said the planned equity raising would provide the airport with a strong funding basis going forward.
“The Retail Offer is part of Auckland Airport’s equity raising initiative announced on 16 September 2024, the first component of which was a placement of Shares to institutional shareholders and investors (Placement) that closed on 17 September 2024 and successfully raised NZ$1,200 million at a price of NZ$6.95 per Share,” he said.
“Auckland Airport is seeking to raise up to NZ$200 million under the Retail Offer, with the ability to accept oversubscriptions at its sole discretion.
“The proceeds of the equity raise will initially reduce net debt, repay the NZ$150 million October 2024 bond maturity, as well as a further NZ$100 million of unhedged drawn facilities, and provide flexibility to fund Auckland Airport’s planned capital investment programme over PSE4 and PSE5 whilst maintaining its A- S&P credit rating and dividend policy.”
AIA has been trading at $6.78