Jet2 completes £422m fundraise to tackle "continually challenging trading environment"
A UK travel company has today announced that it has completed a nine-figure fundraise as it aims to adapt to ongoing pandemic restrictions.
Jet2, which operates a leisure airline and holiday packages, has raised total gross proceeds of approximately £422m through a fundraise launched yesterday (11 February).
The company said that the funding will be used to provide liquidity on an “extended” basis, as lockdowns and travel restrictions take their toll.
The fundraise was “significantly” oversubscribed, comprising more than 35m placing shares and 593k retail shares.
Philip Meeson, executive chairman of the group, commented: “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.
“The board remains of the belief that once able to do so, our customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European leisure cities.”
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