Norwegian Air lower after heavily discounted rights sale
Norwegian Air Shuttle Asa
1,713.50p
15:20 19/04/24
Norwegian Air stock fell around 15% on Monday after offering to sell new shares at a third of the then current market price to raise around NOK3bn (£269.6m) in fresh funding.
In its latest move to bolster finances and just days after IAG ruled out a bid for the airline, Norwegian said it would sell shares in a 2-for-1 rights offer at NOK33 each, or nearly a third of their Friday closing price of NOK97.34.
The airline is trying to shift its business to include low-cost transatlantic flights but is struggling to make the operations profitable. Norwegian has a 2019 savings plan that aims to cut costs by NOK2bn.
“Based on the (Friday) closing price, the theoretical value of each subscription right is NOK 21.45 and the theoretical value of the two subscription rights received per existing share is NOK 42.90,” Norwegian said in a statement.
“Shareholders must decide whether to exercise or sell their subscription rights, or a combination thereof, to maintain the full value of the shareholding.”
Shares of Norwegian finished the session down by 4.46% at NOK93.0.