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Follow-ons and Rights issues

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  • IAG, the airline holding company which owns British Airways, has launched a €2.75bn (£2.49bn) rights issue to give it enough liquidity to withstand Covid-19 disruption until 2023.
  • Capital markets are preparing for a resurgence in Covid-19 cases as infection rates rise in the US and Europe. Bankers and investors are digging in for a longer pandemic than they hoped for and capital raising plans are set for a complete overhaul, report Sam Kerr, Lewis McLellan and Tyler Davies.
  • Mitie Group, the UK outsourcing and facilities management company has completed its £200m rights issue, with over 93% of shareholders taking up their shares with the remainder sold to the market on Wednesday morning.
  • Chinese pharmaceutical company WuXi AppTec has raised HK$7.37bn ($950.4m) of fresh equity, in a hotly-anticipated tap of a new mandate to issue A-shares and H-shares.
  • Equity capital markets have been relentless since the first coronavirus rescue issues in the spring. There is no let-up, with several large deals announced in the past fortnight and scheduled to be priced in August. However, bankers are worried that tired investors are near breaking point.
  • The UK government’s decision over the weekend to reintroduce a quarantine on travellers from Spain is set to make a rights issue far more difficult for International Consolidated Airlines Group (IAG), the airline holding company which owns British Airways, according to equity capital markets sources.