Shares of Japan's ANA drop on report airline plans to raise US$1.9 billion

Shares of Japan's ANA drop on report airline plans to raise US$1.9 billion

Shares of ANA Holdings Inc fell as much as 4.2per cent on Tuesday after a report said Japan's biggest airline plans to issue new shares, seeking to raise around US$1.9 billion, as early as this week.

The logo of All Nippon Airways (ANA) is seen at Tokyo International Airport
FILE PHOTO: The logo of All Nippon Airways (ANA) is seen on its counter amid the coronavirus disease (COVID-19) outbreak, at a terminal of the Tokyo International Airport, commonly known as Haneda Airport, in Tokyo, Japan October 27, 2020. REUTERS/Kim Kyung-Hoon

TOKYO: Shares of ANA Holdings Inc fell as much as 4.2per cent on Tuesday after a report said Japan's biggest airline plans to issue new shares, seeking to raise around US$1.9 billion, as early as this week.

ANA will hold its first share sale since 2012, Reuters reported on Saturday, citing two sources who declined to be identified as the information was not public.

The issuance is expected to raise around 200 billion yen (US$1.9 billion), one of the sources said.

In a statement on Tuesday, the airline said nothing had been decided on a new share sale.

Airlines worldwide are struggling to survive the COVID-19 pandemic that has brought the travel industry to a halt. Although Japan has not been hit as hard as the United States and Europe, its travel industry is suffering.

ANA has forecast a record operating loss of US$4.82 billion for the year to end-March and is temporarily transferring more than 400 workers to other companies. Other staff are being asked to take pay cuts or go on unpaid leave.

ANA's stock was down 1.9per cent by 0336 GMT, compared to a 2.8per cent rise in the benchmark Nikkei 225 Stock Average, as trading resumed after a long weekend.

Domestic rival Japan Airlines Co Ltd said earlier this month it would raise US$1.8 billion in a share sale to strengthen its finances.

(Reporting by Rocky Swift and David Dolan; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)

Source: Reuters

Bookmark