Qantas share offer fails to take off
A QANTAS share offer intended to generate as much as $500m has fallen well short, raising a little over $70m.
Just 5 per cent of eligible shareholders took part in the share purchase plan announced on June 25, with an average total purchase worth $8200.
It followed an institutional placement that raised $1.36bn to help Qantas in its recovery from the effects on the aviation market of the coronavirus pandemic.
Qantas said the timing of the share purchase plan coincided with a series of tightened border restrictions in response to an outbreak of the virus in Melbourne and small clusters elsewhere.
“The timing of these events and the implications for travel demand had an obvious impact on the Qantas share price and the take-up of the SPP offer by eligible shareholders,” the group said.
All eligible shareholders will have their applications granted in full at an issue price of $3.18 a share.
Qantas shares rose 11c to $3.43 yesterday as the sharemarket climbed to a threeweek high. The ASX200 rallied 105.4 points, or 1.76 per cent, to 6110.2 points.