Icelandair received a total offer of ISK 37.3 billion for shares in Icelandair, which accepted an offer of ISK 30.3 billion. Excess demand in the offering was therefore 85% from both institutional investors and retail investors. It was decided to increase the auction from ISK 20 billion to ISK 23 billion, Viðskiptablaðið reported.
The offering price was ISK 1 per share, in addition to which there is a 25% subscription right at the same price plus 15% interest for the next three years amounting to ISK 5.7 billion. A total of over 9 thousand subscriptions were received and the company’s shareholders will be around 11 thousand after the auction. The underwriting of Íslandsbanki and Landsbankinn was not activated, but it was based on up to ISK 6 billion, provided that it managed to reach ISK 14 billion in the auction.
CEO of Icelandair Group Bogi Nils Bogason said: “We are humbled and grateful for the great trust that Icelandair Group was shown in the share offering, which is the final step in the company’s financial restructuring. With a broader shareholder base, a strong balance sheet and a flexible route system, we will be ready to respond quickly when demand picks up again. We intend, here as heretofore, to ensure strong air transport to and from Iceland and across the Atlantic, with the associated benefits for the Icelandic economy and quality of life in this country”.
Meanwhile the board of Icelandair yesterday rejected the offer of American ideologist of collapsed low-cost WOW air resurrection Michele Roosevelt Edwards. According to Fréttablaðið sources, her offer was ISK 7 billion for Icelandair. Ballarin could not provide sufficient collateral to confirm that she had funds available to be able to afford the purchase.