Norwegian Air raises cash through share sales to keep afloat for 2020

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Norwegian Air raises cash through share sales to keep afloat for 2020

Budget airline Norwegian Air has reportedly raised around £211.59 million through the sale of shares on 5th November in order to bolster its sagging fortunes. The airline company also issued bonds to sustain its operations.

A total of 27.25 million shares were sold privately by the airline at the rate of £3.40 (40 crowns) per share. The selling price of the shares was discounted to the tune of about 13 per cent from the airline’s closing share price on the day’s trading in the stock market.

The reason for selling shares – the third such instance by the company recently – is used to regain its profitability that has been severely hurt these days because of its fleet of Boeing 737s being grounded. Norwegian Air has 18 Boeing 737s in its planes’ line-up.

In a statement, the air company said, “The private placement received significant interest from both existing shareholders in the company and new high-quality investors. The convertible bond issue received significant interest from international and domestic investors”.

The company is seeking to run operations smoothly up to 2020 and even in the years after raising this money. Norwegian Air is Europe’s third-largest aircraft operator in terms of travellers. Apart from financial trouble, the airline also reported a drop in the traveller numbers for October 2019 as compared to the same month, in 2018.