Helloworld Travel has completed the retail component of its share entitlement offer and, in doing so, reached its goal of raising roughly $50 million to help weather the COVID-19 storm.
The retail entitlement offer allowed eligible retail shareholders the opportunity to subscribe for one new share for every nine existing, fully-paid ordinary shares at a price of $1.65 a pop.
The offer closed on Monday evening, with Helloworld receiving a total of 655 valid applications for retail entitlements, raising approximately $550,000.
Eligible retail shareholders also applied for approximately $240,000 of additional new shares in excess of their entitlement.
Total funds raised under the retail entitlement offer represent a total take-up rate by eligible retail shareholders of 17.2 per cent.
Together with the placement and the institutional component of the entitlement offer, Helloworld has managed to raise its equity goal of approximately $50 million.
Andrew Burnes, CEO and managing director of Helloworld, said: “We’ve been pleased with the response from shareholders who have participated in the institutional offer and additionally the retail component of the entitlement offer.
“Investor feedback continues to be supportive and 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 both its operating and capital expenditures well into 2022.”