IAG says all £2.5bn rights issue shares taken up

IAG said investors took up all the shares in its €2.74bn (£2.5bn) rights issue after demand for additional shares exceeded supply.

British Airways owner' said shareholders took up 92.75% of new shares during the pre-emptive subscription period which ended on 26 September. The rest of the shares were allocated on a pro-rata basis after investors requested more than double the number of new shares remaining.

The FTSE 100 airline launched the capital raising on 10 September to strengthen its balance sheet during the aviation crisis induced by the coronavirus pandemic. The capital raising was carried out under Spanish law.

IAG, whose other brands include Iberia and Aer Lingus, raised the money to shore up its balance sheet for a potential prolonged downturn for the airline sector. The industry has been battered by government shutdowns and IAG has predicted demand would not recover until 2023 at the earliest.

The company said it was expected the public deed for the capital increase on 2 October. The new shares will start trading on Spanish stock exchanges on 7 October and in London on the same day in the form of Crest depositary interests.