British Airways owner IAG in 2.7-billion-euro rights issue

British Airways owner IAG in 2.7-billion-euro rights issue

IAG will raise 2.741 billion euros through a fully underwritten, heavily discounted capital increase, the owner of British Airways said on Thursday.

The coronavirus disease (COVID-19), in Split, Croatia
FILE PHOTO: People board a British Airways airplane, as Croatia struggles with more cases of coronavirus disease (COVID-19), at the airport in Split, Croatia August 20, 2020. REUTERS/Antonio Bronic

LONDON: IAG will raise 2.741 billion euros through a fully underwritten, heavily discounted capital increase, the owner of British Airways said on Thursday.

IAG said it would issue 2.97 billion new shares at 0.92 euros, representing a 36per cent discount to the theoretical ex-rights price based on the closing price on Wednesday.

For each existing share of IAG, its holder is entitled to one subscription right and 2 subscription rights are required to subscribe for 3 new shares.

The equity raising, to which its biggest shareholder Qatar Airways subscribed for its pro-rata entitlement, was announced in July and approved by shareholders on September 8.

(Reporting by Sarah Young; editing by Jason Neely)

Source: Reuters

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