Big rights issues expected as firms dig in for long pandemic
Equity capital markets bankers are preparing for a busy autumn of rights issues as companies prepare to weather a long period of Covid-19 disruption. Because of the uncertainty over the the length and severity of the pandemic, businesses are said to be looking at larger capital raises than before.
On Friday, IAG, the airline holding company which owns British Airways, launched a €2.75bn (£2.49bn) rights issue to give it enough liquidity to withstand Covid-19 disruption until 2023.
The deal is huge; roughly 79% of its market cap as of Monday morning.Rolls-Royce the UK aerospace company is ...