Auckland International Airport’s $862M Equity Raise to Slash Debt, Boost Capital Investment
September 16 (Reuters) – Auckland International Airport announced on Monday a substantial equity raise aimed at supporting its capital investment plans. The airport operator will raise NZ$1.4 billion (US$861.8 million) through a structured equity offering. This involves an underwritten placement of NZ$1.2 billion and a non-underwritten retail offer to gather up to NZ$200 million.
Shares are being priced at NZ$6.95 each, which represents a 7.8% discount compared to its last trading price of NZ$7.54. According to Chief Executive Carrie Hurihanganui, the raised funds will primarily be used to reduce net debt and provide the financial agility needed to support its long-term capital investment plans, particularly during the price setting event phases four (PSE4) and five (PSE5).
A pivotal aspect of this investment is the development of a new domestic jet terminal, integral to the airport’s NZ$6.6 billion aeronautical capital investment strategy extending through PSE5 until 2032. In line with this project, the airport signed an NZ$800 million agreement with Downer EDI’s subsidiary, Hawkins Limited, to oversee the construction and delivery of the new terminal. This initiative is projected to consolidate domestic and international services under one facility and create approximately 2,500 jobs at its peak.
Auckland International Airport’s stock trading was halted on Monday and is expected to resume on Wednesday or after the completion of the equity placement, as per the company’s statement.
Reporting by Sherin Sunny in Bengaluru; Editing by Lisa Shumaker, Leslie Adler, and Sandra Maler.
Original Story https://www.livemint.com/news/nzs-auckland-intl-airport-to-raise-861-8-mln-signs-contract-to-build-new-terminal-11726438666010.html
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