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Follow-ons and Rights issues

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  • Philippine carrier Cebu Air is looking to tap the equity markets for $500m, in an attempt to position itself for a recovery from the impact of the Covid-19 pandemic.
  • Dufry, the Swiss operator of duty free retailers, has launched a Sfr700m ($766m) rights issue for M&A and corporate capital needs. The rights issue will allow two strategic investors, Advent Group and Chinese e-commerce firm Alibaba to take large stakes in the company.
  • Rolls-Royce started marketing the bond leg of a multi-product recapitalisation and refinancing package on Monday, preparing an offering of more than £1bn-equivalent across three currencies.
  • Global equity capital markets bankers anticipate a disorderly US election in November. They fear that a disputed contest between president Donald Trump and former vice-president Joe Biden could lead to sustained market volatility which would severely impact ECM issuance.
  • IAG, the airline holding company that owns British Airways, had no seats remaining as it priced its €2.75bn rights issue, with 100% of shares taken up by shareholders.
  • Rolls-Royce, the UK aerospace engineering company, has confirmed it aims to raise £5bn from a financing package that includes a £2bn rights issue. The deal’s launch ends months of speculation about whether the company would need to raise capital to endure the Covid-19 pandemic.