This edition of the Deal Report continues the focus on restructuring and recapitalisation transactions with a summary of the recent emergency capital raising undertaken by travel bookings business Webjet Limited (ASX: WEB), one of the first such significant capital raisings undertaken in response to COVID-19.
The transaction involved a $346 million capital raising of additional ordinary shares through:
- a fully underwritten $115 million placement to institutional investors; and
- a $231 million 1 for 1 non-renounceable entitlement offer to all existing shareholders which was fully underwritten.
The transaction was also one of the first to take advantage of the recently announced extension to the maximum placement capacity of an ASX listed entity from 15% to 25%, which allowed the transaction to proceed without the need to obtain shareholder approval.