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Auckland Airport Bookbuild Sets Value For Retail Entitlement

Fuseworks Media
Fuseworks Media

Wellington , Feb 22 NZPA - Retail investors not taking up their entitlement to buy new shares in Auckland International Airport will receive 17c for each share not taken up, which is less than the 26c paid to institutional shareholders.

Auckland Airport shareholders had the right to buy one share for every 16 shares they own at $1.65 each. The airport said on Friday that 76 percent of retail investors decided to participate in the offer and the 7.1 million shares not taken up would be sold in a bookbuild, or tender process. The airport's shares were halted today while the bookbuild was carried out.

The bookbuild set a clearing price of $1.82 a share, which is a 17c premium to the $1.65.

Auckland Airport is raising $126.4 million in total in the under-written capital raising to help pay down debt which increased when it invested in airports in northern Queensland. Its council shareholders said they were participating in the capital raising to maintain their shareholdings.

The capital raising in unusual in that there was no trading of rights to set the value of entitlements not taken up. Instead the bookbuild was used and shareholders receive the premium above $1.65 set by the bookbuild.

An earlier process set a 26c value for institutional shareholders not taking up their entitlements.

Auckland Airport's chairman, Tony Frankham, said investors had demonstrated their support for the company in all stages of the offer.

He was pleased that those retail shareholders who elected not to take up their entitlements, or who were ineligible to participate in the offer, would get value for their renounced entitlements.

The shares taken up under the retail bookbuild are expected to be issued on February 25.

The offer was fully underwritten by Credit Suisse (Australia) Ltd and First NZ Capital Securities Ltd.

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