Kuwait's Jazeera Airways raises capital by 74%

Airline increases funds through share issue which was 2.25 times oversubscribed

Kuwait’s Jazeera Airways raised its capital by 74 percent to KWD42m (US$149m) by issuing 178m shares, each priced at 100 fils.

The share issue, which took place between 16-31 December, was 2.25 times oversubscribed and is the latest in a series of capital raising measures by Kuwaiti companies.

Jazeera Airways has not announced what it will use the extra funds for, but in the past the company has said it would use any such increase in capital to expand its business.

Marwan Boodai, Jazeera Airways group chairman, said: “The oversubscription was one of the most successful rights issues in Kuwait in recent years.

“This result reflects a clear investor appetite for being part of our company’s success story and statement of confidence in our management team.”

The group comprises a fleet of 15 A320 aircraft, 12 of which are already delivered and placed, with the rest scheduled for delivery in 2013 and 2014.

In November 2012 it reported a net profit for the third quarter of 2012 of KWD7.6m (US$26.9m), up 24.6 percent compared to the same quarter last year. Operating revenue for the quarter rose 5.9 percent year-on-year to KWD20.4m, pushing total revenue for the first nine months of 2012 to KD48.7m, up 9.3 percent from the same period in 2011.

At the time, Boodai said: “We just closed our best quarter ever on the heels of eight straight quarters of profitability.

“Two years ago we were a turn-around story, last year we were a sustainable profit story, and today Jazeera Airways is clearly a profit-growth story.”

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