Will be interested to see if Qantas's just announced A$2.7 Billion loss, will sober up some of AIR current shareholders this afternoon.
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Will be interested to see if Qantas's just announced A$2.7 Billion loss, will sober up some of AIR current shareholders this afternoon.
https://www.nzherald.co.nz/business/...ectid=12358047 Read it and weep. Excerpt "The impact of Covid on all airlines is clear. It's devastating and it will be a question of survival for many".
A VERY bad sector to be invested in for the foreseeable future. AIR reports next Thursday. Good luck to shareholders, you're going to need it :eek2:
I think the chances of a substantial capital raise at a deeply discounted price being announced contemporaneously with the full year result next week are quite high.
https://www.nzherald.co.nz/business/...ectid=12358616 Pay-walled
"The airline — led by Walsh — has been advocating for months now to its 51 per cent shareholder (the Government) that it should step up and lead a capital raise to restore the company's balance sheet". Walsh is the new Chairperson.
I think there's at least a 50% chance a substantial capital raise will be announced on Thursday this week along with the annual result.
I would say there is more than 80% chance of capital rise soon.
My read on the Sharesies crowd is they would not have the cash on hand, as a group, to participate 1:1. It would also be the first rights issue for a lot of them, many would be confused, and for some it could blow up the "Jacinda has our back" thesis.
I think a successful raising would require an outsized institutional placement component to be successful - and that will require a much lower price than the Sharesies crowd would be theoretically willing to pay.
The sharesies crowd have had quite a few placements or rights issues and have participated with gusto. Think KMD, IFT, IKE, and many more the last 2 months. Many have been disappointed they got scaled back. Well that is my read on it.
I take your view about the price. I think insto's would accept $1 as a 30% discount to current SP. Also remembering the govt has to put in their share so not that much needs to be raised.
That said my initial post was a bit more tongue in cheek, sounds nice and symmetrical; 1 for 1 at 1.
I thought there was talk capital raise not until after the election? Which would have been 4 weeks away.
Now about 8 weeks away......maybe they can't wait that long??