Equity market prepares for ‘difficult’ Rolls-Royce raise
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 ...