LONDON (Alliance News) - Fastjet PLC said Friday it has raised GBP225,960 through a discounted open offer after the budget African airline looked to attract GBP1.6 million from shareholders as it makes progress in stabilising the business.
In late June, Fastjet announced an open offer to shareholders who could receive one share at a price of 8 pence each for every 26 already held. The company was looking to raise as much as GBP1.6 million through the offer.
In total, however, the firm received 2.8 million valid acceptances. Fastjet will therefore receive GBP225,960 through the offer, implying an uptake of around 14%.
After admission to trading - expected on Monday - Fastjet will have 620.7 million shares in issue.
Also in late June, Fastjet raised USD10 million through a share placing and subscription. All the funds are to be used for working capital purposes, providing the firm with "sufficient" capital for the remainder of 2018.
Later on Friday, Fastjet Chief Executive Officer Nico Bezuidenhout said, in his general meeting statement, that "Fastjet continues to make progress in 2018 and build on the success of the stabilisation plan and on 2017's financial results (which saw a substantially reduced operating loss as a result of total costs being reduced by 48% and load factor increasing by 17 percentage points). This performance provides a foundation for prudent growth."
Bezuidenhout added it launched daily flights between on the "sought-after" route in Zimbabwe between Harare and Bulawayo. Over the next few months, Fastjet intends to increase its network and capacity in Mozambique and Tanzania.
"These markets continue to offer potential for growth, with the deployment of fastjet's ATR turboprop fleet expected shortly and several new routes in both countries under review," Bezuidenhout added.
Bezuidenhout emphasised it continues to assess opportunities in South Africa and "expect to launch new services in this highly attractive market in due course."
"We remain focused on further reducing losses and on delivering our objective of being cashflow positive during the second half of 2018," Bezuidenhout added. "Fastjet remains committed to becoming a successful pan-African airline accessible to everyone."
Shares in Fastjet were 1.5% lower at 8.25 pence on Friday.