United Air plans US$1b share sale in grab for more cash

United Airlines Holdings is seeking to raise more than US$1b by selling shares, stepping up efforts to increase capital to survive a collapse in travel demand. The offering consists of 39.25m shares and the underwriters have an option to buy an additional 3.93m shares, United said Tuesday. The deal is expected to price before the market opens Wednesday between $25.95 and $26.50 a share, said a person familiar with the matter, a discount of as much as 6.9% to the closing price. The stock offering is the first by a major US airline during the coronavirus pandemic. United’s shares tumbled 4% to $26.76 after the close of regular trading in New York, dropping its market value to $6.89b. The stock had plunged 68% this year through Tuesday’s close. <br/>