Air New Zealand rights offer 88% subscribed, international bookings showing 'encouraging signs'

Air New Zealand says its rights offer was 88% subscribed, and it will enter a trading halt on Wednesday morning as it looks to find owners for 274m shares which were not taken up by shareholders under the offer. In early April the national carrier launched a $1.2b rights offer as part of a $2.2b recapitalisation plan to help repay its debts and improve liquidity. On Tuesday evening the airline said the rights offer period ended on Monday, and it had started undertaking a bookbuild for about 274m shares not taken up. The rights offer was expected to be completed on Monday. The bookbuild price will be determined by Air New Zealand in consultation with the offer underwriters on Wednesday and will be equal to or above the rights offer price of 53 cents per new share. Air New Zealand chair Dame Therese Walsh said the offer received strong support. Applications were received for a further $71m in over-subscriptions from existing shareholders applying for more shares than their allocation, she said. “We're very pleased with the level of take up.” Air New Zealand CE Greg Foran said there were encouraging signs in recent passenger booking activity on short haul and international services as a result of New Zealand’s border reopening.<br/>