Auckland International Airport Limited (AIA)

[moimoi]

Great result for the Banks and Bond holders. They get made whole while equity holders get to carry what looks to be a very heavy can down a rather long road...

[blackcap]

Great result for the Banks and Bond holders. They get made whole while equity holders get to carry what looks to be a very heavy can down a rather long road...

Tend to agree with that. Might be time to go short AIA if the price is right.

[trader_jackson]

Underwritten so they will get the money.

I was somewhat surprised at the cap raise, and even more so the rather large size of it (and dilution it will create), and talk of impairment not idea either.. but I suppose at the end of the day, $4.50 is attractive for a monopolistic company with substantial exposure to freight and commercial property - areas which will only grow over time.
While it might not get back to nearly $10 anytime fast, I would think we'd be back into the $6's (a rise of 33% from $4.50...) fairly fast, hence as a holder, (who brought in at $4.50 fairly recently), I'll be more than happy to participate at or below my recent entry price.

[horus1]

I wanted it at $4.

[Aaron]

I for one do not want my ratepayer money, (or future ratepayer money if the Auckland Council borrow to fund this rights issue) going into this sector. I agree Peat, it will be many years before AIA are earning an acceptable return on investment again.

I would suggest Auckland Council can print up as much as they like if they want to participate in a capital raise. Probably at exceptionally low rates too.
https://www.msn.com/en-nz/money/news...cid=spartanntp

[horus1]

I do not get this. 20% more equity , no real revenue for 2 or so years , and a price of 4.66. I have not seen any projections to go with the issue. I have shares , not certain if we will take up the SPP. Probably won't.

[ratkin]

I do not get this. 20% more equity , no real revenue for 2 or so years , and a price of 4.66. I have not seen any projections to go with the issue. I have shares , not certain if we will take up the SPP. Probably won't.

2 years? I think you way out there.

[Bjauck]

2 years? I think you way out there.

How long do you think? I think that it may take perhaps 5 years to get back up the passenger volumes prior to the epidemic and the resulting recession. That is not to say that AIA will not remain a lynchpin of the NZ economy.

[trader_jackson]

2 years? I think you way out there.

Depends what you define as "real", but I certainly wouldn't say it is anything near 2 years of "no real revenue", probably not even half a year of "no real revenue".

Insto placement all done and dusted at $4.66 AFR reporting.

I would think SPP is going to be bigly oversubscribed.

[Balance]

Depends what you define as "real", but I certainly wouldn't say it is anything near 2 years of "no real revenue", probably not even half a year of "no real revenue".

Insto placement all done and dusted at $4.66 AFR reporting.

I would think SPP is going to be bigly oversubscribed.

And Auckland Council decided to pass - getting diluted to 18% and missing on any upside of the placement shares.