By Millie Turner, cityam.com
British holiday company Jet2 said this morning that it has raised £422m through a new share issue to bolster the company’s finances amid sustained restricted travel.
Equal to 20 per cent of its share capital prior to the fundraise, the fundraiser comprised of over 35m placing shares and subscriptions for nearly 600,000 retail shares.
“The board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment,” Jet2 said in a statement.
The company said that the fundraise was “significantly oversubscribed”, with participation from existing shareholders and new investors alike.
Executive chairman Philip Meeson said: “The Board is grateful to both existing shareholders and new investors for their significant support of this equity issue.
“The Directors believe the Fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach.”
The boost in equity will also help the company support sustainable long term profit growth with the opportunity to take longer-term strategic decisions.
The fundraise has improved Jet2’s ability to effectively recover from the pandemic in a “stable commercial position” the company said, so that it can capitalise on the predicted holiday boom when it eventually arrives.