Shares of Rolls-Royce Holdings PLC (LON: RR.) fell 10% today after the company confirmed plans to raise a total of 5 billion pounds to improve its balance sheet.
“The capital raise announced today improves our resilience to navigate the current uncertain operating environment,” Chief Executive Warren East said on Thursday.
The amount of 2 billion pounds is expected to come from its shareholders. Shares fell as initial media reports were centered around a 3 billion pound capital raise.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
The company registered cash outflows of 4 billion pounds this year. The plan is to return to profit during the second half of next year.
Rolls-Royce, one of the world’s largest engine makers, is paid based on the number of hours its engines fly. The rights issue will be a major point at the shareholders’ general meeting scheduled for October 27.
Given that the international travel industry collapsed amid the pandemic, shares fell to 17-year lows. Rolls-Royce share price fell over 46% in September.
PEOPLE WHO READ THIS ALSO VIEWED:
- Aston Martin share price up 15% in two days. Here’s why
- Experience stock trading with a reliable demo account
- Implement Divergence Trading strategy in your daily trading plan