Jet2 owners raise £172m in share placing

Jet2 owner Dart Group has raised £172m from a “significantly oversubscribed” share placing.

The fundraising is part of a package of measures that will give the airline “additional headroom to deal with this most challenging of trading environments”.

The Leeds-based group has placed 29.8m shares at 576.5p each, a price which did not discount from its share price.

However its share price plummeted in February and March as a consequence of the spreading Covid-19 pandemic. It fell from an all-time high of 1,950p, and this share placing was at a price 70% below the February peak.

The placing shares issued represent 20% of the existing issued ordinary share capital of Dart immediately prior to the placing.

Canaccord Genuity acted as Joint Global Co-ordinator, Joint Bookrunner and Joint Broker. Barclays and HSBC acted as Joint Global Co-ordinators and Joint Bookrunners.

Philip Meeson, executive chairman of Dart, said: “The Group is grateful to both existing shareholders and new investors for their significant support of this equity issue at no discount to the prevailing share price.

“The Board believes the proceeds of the Placing, together with the recently confirmed Bank of England £300m COVID Corporate Financing Facility (currently undrawn) and the Group’s fully drawn Revolving Credit Facility of £100m, will provide the Group with additional headroom to deal with this most challenging of trading environments.

“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 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.”