An oversubscribed rights offer will net Finnair (AY, Helsinki Vantaa) around EUR558.2 million euros (USD609.5 million), according to preliminary offer results released by the airline on November 21, 2023.

A total of 19,038,769,224 new shares were subscribed for, or approximately 100.14% of the offer shares, at a price of EUR0.03 (USD0.033) per share. Subject to board approval, the total number of shares in Finnair will increase by 19,012,413,069, from 1,408,726,198 to 20,421,139,267 shares, as a result of the offering. After factoring in the net transaction costs, Finnair will receive net proceeds of about EUR558.2 million, of which approximately EUR239.6 million (USD261.6 million) is cash.

"Through this successful rights issue, we reduce Finnair's financing costs, support strategy execution to drive sustainable, profitable growth, and ensure the ability for future investments," said Finnair CEO Topi Manner.

When announcing the subscription last month, Manner said the objective was to strengthen Finnair's financial position, reduce financing costs, and repay a loan to its majority Finnish government owner. On November 24, the airline confirmed that a EUR400 million (USD438 million) capital loan granted by the state of Finland had been repaid in full with interest.

As a result of the issue, the government acquired an additional EUR318.6 million (USD348 million) worth of shares after offsetting Finnair's capital loan with an amount corresponding to the subscription price.

The last day of trading for Finnair's existing (interim) shares will be on or about November 24. The newly issued shares will be registered with the Finnish Trade Register on the same day. The interim shares will be combined with the new shares on or about November 27 and start trading on the Nasdaq Helsinki exchange on the same day.

Finnair flies to 104 destinations in 39 countries with its fleet of 80 aircraft. It recently returned to profitability but maintains an uncertain medium-term outlook due to regional geopolitical issues, high inflation, and high interest rates.