Norwegian Air will sell new shares at a 79% discount to the latest traded price on the Oslo Bourse, the budget carrier said on Tuesday as it seeks to boost its equity in order to qualify for Norway's government aid package.
) will sell new shares at a 79% discount to the latest traded price on the Oslo Bourse, the budget carrier said on Tuesday as it seeks to boost its equity in order to qualify for Norway’s government aid package.
Norwegian aims to sell new shares at 1.0 crown each, it said, far less than Tuesday’s closing price of 4.80 crowns as it seeks to attract investors even while the debt conversion leads to a massive dilution of ownership stakes. If the process fails however, Norwegian Air is at risk of running out of money by mid-May even though it only pays invoices vital to maintaining minimum operations, it said on April 27.
For the next 12 months, Norwegian plans to fly only seven aircraft, all on domestic routes in Norway, targeting a gradual expansion next year and a return to normal operations in 2022, albeit with a reduced short-haul and long-haul network.
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