Rask’s investment analysts have identified The Afterpay Ltd (ASX:APT) share price has dropped another 4% this morning as investors worry about PayPal Holdings Inc (NASDAQ:PYPL). The online travel agent’s shares were down as much as 33% to $2.53 at one stage.Thankfully, they have bounced back strongly since and are now down 13% to $3.27.Webjet’s shares had been suspended from trade over the last couple of weeks whilst it sought funding to see it through the coronavirus crisis.The closing of borders and travel restrictions globally have hit Webjet and fellow travel bookers significantly, leaving them in a precarious position.The good news is that Webjet has been able to come up with funding that will see it through to at least the end of 2020.This morning the company revealed that it has successfully completed its institutional placement and institutional entitlement offer.The size of placement was increased due to strong demand, leading to the company raising $231 million from institutional investors at a price of $1.70 per new share. 7:10am, shares in The Costa Group Holdings Ltd (ASX:CGC) share price is up 24% in a week.
My question is. For people able to take part in the capital raising, I think the $1.70 price looks very, very attractive.
Webjet Limited Conference Call 2 July 2020 – Convertible Bond.
Of course, there is an offer for institutions and smaller, retail shareholders.Initially, the company planned a fully underwrittenWebjet said this morning the institutional placement raised $231 million, with the entitlement offer for existing institutional shareholders raising $115 million.
-59.27% Over the past six months, the relative strength of its shares against the market has been -46.13%.
Share Price. Explore this interactive chart for our latest analysis on Webjet! x
As of The price will determine exactly how painful the offer will be for Webjet and its shareholders and dictate how many new shares need to be issued to get to the $250 million target.
Webjet Limited *Price delayed by 60 minutes. Online travel agent Webjet is seeking a $250 million equity injection.The company's bankers were crossing fund managers on Monday, seeking to shore up their support for both Webjet and the mooted raising.Webjet managing director John Guscic and his fellow directors are facing a busy few days.
This is due to open on April 8, before closing on April 21.Eligible retail shareholders will be able to subscribe for 1 new share for every 1 fully paid ordinary shares held in Webjet as at 7:00pm (AEDT) on the record date of April 3.
Net debt will be reduced from $135 million to a net cash position of $140 million.This capital raising will also mean Webjet is well placed to do well after this period is over.Webjet is working on an initial cost reduction program and further costs can be reduced if required. Sunhotels platform provides global accommodation along with a range of ancillary products such as transfers and excursions. What you need to know about the capital raising Webjet was aiming to raise at least $275 million from investors by selling shares at an offer price of $1.70, a discount of 32.2% to the ‘theoretical ex-rights price’ of $2.51 (according to Webjet). The price will determine exactly how painful the offer will be for Webjet and its shareholders and dictate how many new shares need to be issued to get to the $250 million target. So it’s very hard to make any medium-term earnings predictions with any certainty.For people willing to think long term I think Webjet could be good, volatile buy today. © Stockopedia 2020, Refinitiv, Share Data Services. As we emerge from COVID-19, some tech companies are growing faster than ever.
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