Flyr seeks NKr530m through share issues to relieve ‘very strained’ finances

Norwegian budget carrier Flyr is looking to reinforce its financial position with share placements which would potentially raise NKr530m ($50m). This scheme comprises a private placement for NKr430m and a possible subsequent placement, for those unable to participate in the private issue, aimed at raising another NKr 100m. Flyr says its financial situation is “very strained” and that it has a “near-term liquidity need”. The airline disclosed in October that it was considering options to prop up its balance sheet and was seeking discussions with investors. Flyr has been trying to cut costs and is cutting back operations for the winter season. It is revisiting the market to “re-establish” its financial position and support the company through the winter, as well as prepare it for summer 2023 ramp-up. Flyr conducted a NKr250m equity raise in Q2, but in June it shelved plans for a further placement of shares because its stock price – around NKr1 at the time – had fallen below the NKr1.20 offer price. The stock price has continued to slide, losing around 90% of its value since June, and the carrier is proposing a subscription price of just NKr0.01 for both of the new placements – which would involve issuing up to 53b new shares.<br/>