Daily ShareChat: Auckland International Airport

Auckland International Airport's retail shareholders may wish until closer to the February 18 deadline before deciding whether or not to take up their rights in its $126.4 million capital raising, says ASB Securities analyst Florian Burch.

"There is (as always) a risk that adverse or positive news between now and when the follow-up book-build takes place will impact the price achieved in the book-build, which would affect any premium payable to non-participating shareholders and the discount of the entitlement price to the market price of the shares," Burch says.

A book-build for the institutional part of the one-for-16 offer was completed on Friday at $1.91 per share compared with the $1.65 a share price offered retail shareholders. However, because 99% of institutional shareholders took up their rights, very few shares were available under the book-build.

Any rights retail shareholders choose not to exercise will be sold through a similar book-build on February 22.

Burch says the airport's trading update was broadly in line with his expectations with higher revenue and lower depreciation contributing to a 3% higher than he had expected net profit of $54 million for the six months ended December.

Burch is forecasting a $98.7 million net profit for the year ending June, down from the $109.2 million result before $67.5 million in one-off costs the airport reported last year.

Investment rating: outperform (raised from marketperform to reflect the recent fall in the share price).

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