easyJet: share dives after fund-raising
(CercleFinance.com) - The easyJet share is down around 6% in London on Wednesday, with the low-cost airline announcing the terms of a placement that should enable it to raise 419 million pounds (around 465 million euros).
easyJet officially launched the capital increase this morning with a unit subscription price of 703 pence per new share, which represents a 5% discount to the previous day's closing price.
The operation, which represents 59.5 million shares or nearly 15% of the group's capital, nevertheless will have a significant dilutive impact.
The announcement of this placement comes the day after the publication of its H1 results for the period ended 31 March.
In a statement yesterday, easyJet said that the number of passengers carried fell by 7.4% during its first half of the fiscal year, a decline that it attributes to the initial effects of the coronavirus epidemic.
The carrier nevertheless tries to reassure investors by saying that it has cash of around 2.4 billion pounds and by reporting "encouraging" bookings for the summer season.
However, these statements did not prevent the stock from falling by over 5% (10.30 am) on Thursday morning on the London Stock Exchange, after having lost nearly 10% at one time.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
easyJet officially launched the capital increase this morning with a unit subscription price of 703 pence per new share, which represents a 5% discount to the previous day's closing price.
The operation, which represents 59.5 million shares or nearly 15% of the group's capital, nevertheless will have a significant dilutive impact.
The announcement of this placement comes the day after the publication of its H1 results for the period ended 31 March.
In a statement yesterday, easyJet said that the number of passengers carried fell by 7.4% during its first half of the fiscal year, a decline that it attributes to the initial effects of the coronavirus epidemic.
The carrier nevertheless tries to reassure investors by saying that it has cash of around 2.4 billion pounds and by reporting "encouraging" bookings for the summer season.
However, these statements did not prevent the stock from falling by over 5% (10.30 am) on Thursday morning on the London Stock Exchange, after having lost nearly 10% at one time.
Copyright (c) 2020 CercleFinance.com. All rights reserved.