Auckland Airport has today announced a planned $1.4 billion equity raise to fund its “ongoing capital investment programme”.
The announcement was made on the NZX and the ASX, stating the airport has signed a contract with Hawkins Limited to manage the construction and delivery of its new domestic jet terminal.
The new terminal will cost around $2.2 billion, including the airfield, integrated baggage systems and associated facilities.
“The equity raise comprises an underwritten placement of $1.2 billion (“Placement”) and a non-underwritten retail offer to raise up to $200 million (“Retail Offer”),” the statement on NZX read.
“The Domestic Jet Terminal project is a significant element of Auckland Airport’s terminal integration programme and of the wider $6.6 billion planned aeronautical capital investment programme.”
Auckland Airport outlined key points the equity raise aims to fund.
• Replace ageing infrastructure built in the 1960s with modern, fit for purpose facilities that are more resilient and better able to cope with the expected growth in passenger demand;
• Enable critical resiliency upgrades to the airfield and runway to take place by 2030; and improve connectivity between international and domestic jet services, reducing minimum connection times between flights.
Auckland Airport chief executive Carrie Hurihanganui gave comment on the announcement.
“As the primary border of Aotearoa New Zealand and gateway to its largest city, Auckland Airport is making a once-in-a-generation investment to be resilient and fit for the future.
“Our infrastructure development programme continues to accelerate with the signing of the Hawkins contract, a key element in our capital investment programme.”
The $200 million to be raised under the retail offer will be eligible to existing Auckland Airport shareholders with a registered address in New Zealand and Australia.
It will allow them to “subscribe for up to NZ$150,000 (for New Zealand eligible shareholders) and A$45,500 (for Australian eligible shareholders) of new Auckland Airport shares, free of any brokerage or transaction costs,” the statement on NZX read.
“The price of shares in the Retail Offer will be the lower of the placement price and a 2.5% discount to the five-day VWAP of Auckland Airport shares traded on the NZX during the last five trading days of the retail offer period.”
The final terms of the Retail Offer are expected to be announced in more detail on Thursday.
