The Qantas Group has completed its non-underwritten Share Purchase Plan, raising approximately AUD 71.7 million ($51.1 million) This follows Qantas’ AUD1,360 million underwritten placement to institutional investors which was successfully completed on July 1, according to an ASX filing.
The SPP closed on 5 August 2020. Qantas received valid applications totalling $71.7 million from 8,660 eligible shareholders. This represents a participation rate of approximately 5% of 173,343 eligible shareholders, and an average SPP application amount of $8,200.
The take-up is lower than expected and Qantas said in its filing that unlike the underwritten equity raise, the timing of the SPP coincided with a series of tightened border restrictions across Australian states and territories, sparked by a COVID-19 outbreak in Melbourne and small clusters elsewhere.
“While the Qantas Group’s recovery plan anticipates some uncertainty associated with the pandemic, the timing of these events and their implications for travel demand had an obvious impact on the Qantas share price and the take-up of the SPP offer by eligible shareholders,” it said.
New Shares issued under the SPP will rank equally in all respects with Qantas’ existing ordinary shares.