- Virus-plagued travel company Flight Centre Travel Group (FLT) has raised $138 million through a retail entitlement offer
- Together with an institutional placement and entitlement offer, the total cash raised amounts to $700 million
- The funding will be used to strengthen Flight Centre’s balance sheet and liquidity position in this difficult and uncertain time
- Managing Director and CEO Graham Turner is extremely pleased with the support from retail shareholders that participated in the offer
- Despite the news, Flight Centre is down 2.30 per cent on the market today, selling shares for $9.79 each
Virus-plagued travel company Flight Centre Travel Group (FLT) has raised $138 million through a retail entitlement offer.
Together with an institutional placement and entitlement offer, the total cash raised amounts to $700 million.
The funds raised will be used to strengthen Flight Centre’s balance sheet and liquidity position in this difficult and uncertain time.
Flight Centre says its retail entitlement offer received strong support. A total of 13,116 applications for retail entitlements were received, for approximately $92 million, which represents a take-up rate of approximately 67 per cent.
In addition, two million shares (amounting to roughly $14 million in applications) were accepted under the oversubscribed facility, increasing the total take-up from eligible shareholders to around $106 million and bumping the take-up rate to 77 per cent.
The 4.4 million shares that were not taken up under the retail entitlement offer will be allocated to the offer’s sub-underwriters.
Managing Director and CEO Graham Turner is extremely pleased with the support from its retail shareholders that participated in the offer.
“In addition to proceeds raised under the Placement and the Institutional Entitlement Offer, proceeds raised under the Retail Entitlement Offer will be used to strengthen Flight Centre’s balance sheet and liquidity position, ensuring Flight Centre can trade through this period of dislocation and uncertainty across the travel sector,” he said.
Despite the news, Flight Centre is down 2.30 per cent on the market today, selling shares for $9.79 each at 1:02 pm AEST.