Helloworld’s $50m equity raising gets off to successful start

Helloworld Travel has completed its institutional placement and institutional entitlement offer of new fully-paid ordinary shares, as the company looks to raise $50 million to help survive the COVID-19 pandemic.

After announcing the equity raising on Thursday morning, Helloworld closed its institutional offer the very same day and had strong support from institutional investors, with a take-up rate from eligible institutional investors of approximately 97 per cent.

Helloworld raised gross proceeds of approximately $41.6 million from the offer at a price of $1.65 per new share, consisting of approximately $27.1 million under the placement and approximately $14.5 million under the institutional entitlement offer.

The company said the placement also attracted strong demand, with several new institutional investors introduced to the Helloworld register.

New shares subscribed for under the institutional offer are expected to be settled on Friday 24 July 2020, and to be issued and commence trading on the ASX on Monday 27 July.

Helloworld expects to raise a further $8.4 million with a retail entitlement offer, which it expects to open on Thursday 23 July 2020 and close on Monday 3 August 2020.

The company expects the ASX to lift its trading halt and for its ordinary shares to recommence trading on an ex-entitlements basis from when the market opens today.

Helloworld CEO and managing director Andrew Burnes said: “The fact the placement attracted strong demand, with several new institutional investors introduced to the Helloworld register, demonstrates the market’s positive view on the long-term viability of the travel industry and their confidence in Helloworld Travel’s capacity to manage its way through the next 12 to 24 months, as the world learns to cope with and eventually eliminate COVID-19.

“As previously announced, the proceeds from the equity raising will provide Helloworld with the balance sheet liquidity and flexibility to maintain its operating and capital expenditure well into 2022.”

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