Russia's Aeroflot plans to raise at least 80b roubles in Moscow SPO

Aeroflot plans to raise at least 80b roubles ($1.02b) in a secondary public offering (SPO) in Moscow, it said on Friday. Aeroflot has been hit by the new coronavirus outbreak this year which grounded most passenger planes around the world. It, however, believes in long-term structural growth of the Russian passenger aviation market, said CE Vitaly Saveliev. “The additional equity capital raised via this Offering will put the Aeroflot Group on a firm footing as we continue our recovery from the impact of COVID-19 and build for the future,” Saveliev said. Institutional investors are expected to buy Aeroflot’s new shares for up to 39b roubles, while the rest will come from existing shareholders, including the Russian government, which aims to maintain its stake in the airline at the current 51.2%, Aeroflot said. Aeroflot will start investor meetings on Friday. Books are expected to be closed on Oct. 8, a source, familiar with the possible deal, and a financial market source said.<br/>