Sharechat Logo

Auckland Airport institutional shareholders snap up discounted stock

Friday 29th January 2010

Text too small?

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 $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 January 26.

Shares of the nation’s busiest gateway are halted for the capital raising and are likely to remain so until February 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.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Auckland International Airport Limited (NZX: AIA)
Auckland Airport sees growth in luring Asian travelers, tapping landbank
Auckland Airport shares climb to 6-year high on better earnings, higher dividend
Auckland Airport boosts FY profit 25 percent as property values rise, ups dividend
Auckland Airport expected earnings just within regulator's tolerance
Ex-Fonterra chairman van der Heyden to lead Auckland Airport board
Auckland Airport's 8 percent expected returns 'reasonable', regulator says
Auckland Airport 1H profit rises 11 percent on growth in domestic passenger traffic
Pre-Offer Announcement - Auckalnd International Airport
Auckland Airport flags $100 mln bond offer