Equity market prepares for ‘difficult’ Rolls-Royce raise

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By Sam Kerr
21 Sep 2020

Rolls-Royce, the UK maker of aircraft engines, has confirmed it is considering holding a £2.5bn ($3.19bn) equity raise, but buy-side sources were struggling to make the investment case for the company given the uncertainty over its future. Its stock fell 10% on Monday on the announcement and fears that the UK will return to a lockdown to stop the dramatic rise in Covid-19 cases.

Roll-Royce said it was “evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance”.

The company added that its review of its finances included new debt issuance.

The statement came after weekend ...

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