- The Qantas Group (QAN) has already successfully completed its $1.3 billion placement
- Just yesterday, the red kangaroo announced it was going to cut 6000 jobs and aim to raise $1.9 billion
- Approximately 94 per cent of the total shares on offer went to investors who already have a shareholding in the airline
- Funds will be used to speed-up recovery and strengthen Qantas’ balance sheet
- However, Qantas shares have fallen after coming out of a trading halt today
- Shares are down 6.44 per cent to trade for $3.92 each
The Qantas Group (QAN) has already successfully completed its $1.3 billion placement.
Just yesterday, the red kangaroo announced it was going to cut 6000 jobs and aim to raise $1.9 billion.
Qantas issued around 372.7 million shares for $3.65 each. The company said it received high levels of interest from institutional shareholders and new investors, however, the priority was for existing shareholders to get in on the raise.
Approximately 94 per cent of the shares on offer went to investors who already have a shareholding in the airline.
Funds will be used to speed-up recovery and strengthen Qantas’ balance sheet.
“The fact that there was significant demand for this offer shows clear support for our recovery plan and confidence in the fundamentals of this business,” CEO Alan Joyce said.
“The plan involves some difficult decisions but we are extremely well-positioned to get through this crisis and start growing again on the other side,” he added.
A share purchase plan is also on the cards for Qantas. This will be capped at $500 million, with shareholders able to purchase up to $30,000 worth of shares.
However, Qantas shares have fallen after coming out of a trading halt today. Shares are down 6.44 per cent to trade for $3.92 each.