NZ’s Auckland Intl Airport to raise $861.8 million, signs contract to build new terminal By Reuters

(Reuters) – New Zealand’s Auckland International Airport said on Monday it would raise NZ$1.4 billion ($861.8 million) for a planned capital investment programme.

The company said the share raising consists of a NZ$1.2 billion underwritten offering and an unsubscribed retail offering to raise up to NZ$200 million.

The stock was offered at NZ$6.95 per share, representing a 7.8% discount to Auckland International Airport’s last closing price of NZ$7.54 on Friday.

Chief Executive Officer Carrie Horihangani said the proceeds from the equity raising will be used to reduce net debt, and provide flexibility to fund the planned capital investment programme over the remaining years of Price Setting Event 4 (PSE4) and PSE5.

The Domestic Jet Terminal project is a key part of the Auckland International Airport Integration Programme and the wider NZ$6.6 billion aviation capital investment programme on PSE4 and PSE5 to 2032.

The airport operator also signed a NZ$800 million contract on Monday with Downer EDI unit, Hawkins (NASDAQ:) Ltd., to manage the construction and delivery of the new domestic jet terminal building.

The station will bring together local and international services under one roof.

The company said the contract, which is part of the construction of a new NZ$2.2 billion domestic plant, would create about 2,500 jobs for the country at peak.

The airport facilities company said in a statement that trading in its shares was halted on Monday and would resume on Wednesday or after the subscription process was completed.

(1 USD = 1.6244 NZD)