Icelandair Postpones Public Offering

Icelandair Group has postponed its public share offering, Morgunblaðið reports. The public offering, originally planned to be held at the end of June, had already been postponed until August. The company had planned to issue shares worth up to USD 200 million, or the equivalent of ISK 27.5 billion.

Instead, the board will be calling a meeting of shareholders, asking for permission to postpone the date of the public offering, which was to have been held by the end of August. The company would like the public offering to take place in September.

Icelandair Group now aims to sell new shares of ISK 20 billion in nominal terms for a price of ISK 1.0 per share.

Furthermore, in case of oversubscription, the board of directors would be authorized to increase the share offering by up to ISK 3 billion, resulting in a maximum offering size of ISK 23 billion.

The airline announced last night that negotiations with the Icelandic government, along with Íslandsbanki and Landsbanki, regarding a government guaranteed credit facility are in the final stages.

Once the approval of the government for the credit facility (subject to further approval by the Icelandic parliament) has been obtained, the company plans to publish an information memorandum for potential investors. It expects to do so in the coming days.

The price of Icelandair Group shares has fallen by 42 percent at Nasdaq Iceland this morning, mbl.is reports. During the past six months, the company’s share price has fallen by 88.55 percent.