Auckland International Airport said 99% of institutional investors decided to participate in its capital raising and those who did not receive 26c for each share they were entitled to.Two steps in the airport's $126.4 million capital raising have now been
Auckland International Airport said 99% of institutional investors decided to participate in its capital raising and those who did not receive 26c for each share they were entitled to.
Two steps in the airport's $126.4 million capital raising have now been completed, raising $69.4 million. The offer to retail investors now takes place.
The capital raising has an unusual structure for New Zealand. Investors have the right to buy one new share for every 16 held at $1.65 each, a 13.3% discount to the last traded price.
Traditionally those not taking up a right can trade it and get some money. In this capital raising a book build is held to set the value of the right.
The institutional part of the raising is run quickly. The company today announced how many institutions agreed to buy new shares and also the results of a bookbuild, or tender process, to the set the value of rights not taken up by institutions.
The bookbuild set a "clearing price" of $1.91 per share, a 26c premium to the $1.65 offer price.
"The institutional bookbuild was well supported, attracting bids from both new and existing New Zealand, Australian and international investors," the company said.
Institutional shareholders who elected not to take up their entitlements and ineligible institutional shareholders will receive 26c for each new share not taken up.
Auckland Airport's chairman Tony Frankham said the success of the institutional bookbuild demonstrated strong support for the company.
He was pleased with value to be received by the few institutional shareholders who elected not to take up their entitlements and ineligible institutional shareholders.
The shares taken up under the institutional bookbuild are expected to be issued on February 4. They will also commence trading on the NZSX on February 4 and on ASX on February 5.
Auckland Airport shares are on trading halt until next Tuesday.
The retail component of the offer opens on February 2 and closes on February 18. A separate bookbuild will determine the amount the retail shareholders will receive for entitlements not taken up. It could be more or less than 26c.
The offer is fully underwritten by Credit Suisse (Australia) and First NZ Capital Securities.
Both Auckland City Council and Manukau City Council have said they were taking up their rights so they could maintain their shareholdings in the airport.
The NZ Super Fund also has 10.1% stake in the airport.
