AIR - Air NZ.

[Arbroath]

Quite astounding the resilience of the current market depth with Cap Raise being more than double what was expected. Whats an extra Billion between friends right Surely even retail folk can see what this size Cap Raise means. The resulting dilution of shareholders value. In one way forcing them to inject more capital at an offer to buy 2 shares for each share you currently own at a 'discounted Cap Raise offer' to try to make it look attractive. ie Cost averaging down as the share price will need to be low enough to be attractive to get funds through the cap raise. With no dividends in sight. Years away from breaking even let alone become profitable. Shareholders can expect to see previous low end trough of 0.70-0.80 tested for sure. Will be surprised if there is not a massive sell down ahead of Cap Raise. As post this massive unprecedented (in NZ) cap raise there will not likely be any reason for share price to rally, so those looking for a quick buck off buying in at cap raise offer and selling to make 10-20% won't be interested as likely will at best see SP plateau at Cap Raise price, or slowly decline, as most Cap Raise offers have seen in recent times. As many of us were suggesting on this thread for a long time, blood batch to share holders in the water. Surprised with so much pre warning there wasn't already a mass exodus. Those hat live in hope I guess. But no body expected the raise to be this big. Most analysts are recommending their fund managers downgrade and sell off / reduce current portfolio exposure. Will be interesting to see where Cap Raise price is set and how long support remains in market depth until everyone understands the reality of this 2 Billion dollar 'fund raising campaign' (to pay debt!) that has just been announced.

Cap raise is not twice what was expected...only raising $1.2b of actual equity, the other $1.0b is just rearranging debt funding although the preference shares will likely convert to equity to be fair as the operational performance is unlikely to be good enough to avoid that...

wait a couple of weeks and the rights will probably be 10 cents or so...agree why own when a potential dividend is 4 years away and there are so many variables, like oil prices and customer travel patterns, that are far from certain....might interest me around 50 cents....maybe

[Maxtrade]

this is a transfer of ownership from the informed to the uninformed - although they have had plenty of opportunity to be informed.

100% Sad for retail investors who might not understand what's happening here.

Cap Raise 0.53, 2 for 1

Where do you think SP is heading!

Will see big sell off by close tomorrow. Glad we sold all out of our portfolio prior as mentioned quite some time ago previously in thread.

[snigmac]

What are people's thoughts of a consolidation after the cap raise?

[Beagle]

I'm calling it. The assumptions in the capital raise are absolutely ridiculous and wildly optimistic. Fair value is only 25 cents, SELL !

Hope the underwriters have their sub underwrite agreements all water tight and iron clad.
Can't help myself speculating if one of the sub underwriters is the Crown ?

[Rawz]

Dropping like a stone now.

Cant believe $2m odd traded in first 15mins with little sp movement

[Waltzing]

The SHAZ wont understand a word being said here....

SHAZ HQ promotes shares like they are a Prezzy Card...

[Rawz]

The SHAZ wont understand a word being said here....

SHAZ HQ promotes shares like they are a Prezzy Card...

Sharesies at least put out a disclaimer this morning that they were being paid by Air NZ to promote the offer.
Now no worries when they run their $100 prezzy card price draw for those that make a top up to their account (just in time for the cap raise)

[ordop]

I know you equities guys won't care too much but I'll be fascinated with how AIR successfully price and sell $600m of debt in the middle of this year. The margin to swap is going to be horrendous.

I reckon Air will close tomorrow evening about $1.14 which is a $0.20 rights price. Then with rights trading it will go down closer to the end of April as people have to front up with coin.

[Waltzing]

Since the SHAZ dont own the shares they really arnt shareholders anyway.

They wont actually think they lost any money. Just a little pastel colour on the page.

Bit like being at the races or a pokey... its just a bit of fun and wow! a Prezzy Card!

How good is this!

[ordop]

Sharesies don't participate in pre open apparently so the broker stats will show it wasn't them on the open - probably ASB or DBL. Sharesies enter the market after the NZX opens so their buyers will have been supporting the bid thereafter.