Shares of Rolls-Royce Holding PLC (LON: RR) today surged 8.2% after the company reported that its £2 billion rights issue had been completed with a 94% acceptance rate.
The 10-for-3 rights issue was priced at 32p per new share and the firm was able to sell 6.06 billion shares representing 94% of the total with the remaining 375,096,792 shares being left in the hands of the underwriters.
Rolls Royce shares later fell 3% as the markets absorbed the new shares, which began trading today. The engine maker’s shares had rallied from under 70p apiece to over 120p on news of the coronavirus vaccine as investors anticipate renewed demand for jet engines.
Investors expect airline travel to pick up once the COVID-19 vaccine is commercially available, which saw airline and travel-related stocks rally this week following news of the effectiveness of Pfizer’s and BionTech’s vaccine.
Rolls-Royce share price
Rolls Royce shares today surged 8.2% to trade at 106.50p having risen from Wednesday’s closing price of 98.42p.