Qantas opens SPP to raise $500m

Qantas retail shareholders are being offered a 2.5 per cent discount in a share purchase plan that will raise $500 million to help the airline navigate the virus crisis.

Shareholders will each be able to buy up to $30,000 of stock, which the airline said would be offered at the lower of $3.65 per share, or a 2.5 per cent discount on the volume-weighted average price of the five days before July 22.

The share purchase plan complements a $1.4 billion placement to institutional investors at $3.65 per share, completed last week.

The airline is raising $1.9 billion in equity as its prepares for several years of substantially reduced numbers of flights due to COVID-19.

Earlier this month, Qantas said it would cut at least 6,000 jobs for the same reasons.

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