Saturday, February 27, 2021

Jet2 raises more than £420m to combat COVID challenges

Jet2 has raised over £420 million via a placing as the listed Leeds-headquartered travel operator looks to fend off the challenges posed by coronavirus.

The company has raised total gross proceeds of about £422 million through the fundraise, comprising 35.2 million placing shares and subscriptions for 593,561 retail shares.

According to a treading update, the fundraise was significantly oversubscribed.

The fund will be used to provide liquidity during the current shutdown period and through the challenging trading environment.

Executive Chairman Philip Meeson said: “The board is grateful to both existing shareholders and new investors for their significant support of this equity issue.

“Based on the indicative scenario planning undertaken by management, the board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment.

“Furthermore, the directors believe the fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well positioned to capitalise on the upturn opportunity when it arrives.”

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