Qantas raises $1.4b equity for COVID era

Qantas has raised $1.36 billion from institutional investors as part of a $1.9 billion share sale, and its shares will resume trading when the market opens. 

The airline sold 372.7 million new shares at $3.65 each, a 12.9 per cent discount to Wednesday’s closing price of $4.19.

Qantas is preparing for several years of substantially reduced numbers of flights due to COVID-19, and on Thursday announced it would cut at least 6,000 jobs.

The airline will raise another $500 million through a share purchase plan for retail investors at the same price. 

Qantas said the proceeds from the share sale will help strengthen its balance sheet and position it to capitalise on opportunities in the future.

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