Virgin Australia Holdings (VAH) has completed the institutional part of its entitlement offer, raising gross proceeds of $281.4 million.
In a statement to the Australian Securities Exchange, Virgin Australia said eligible institutional shareholders took up 98.4% of their entitlements under the offer, which opened yesterday, and is expected to raise $350 million in total.
Shareholders were able to subscribe for five new Virgin Australia shares for every 14 existing shares held at a price of 38 cents per new share.
As well as taking up their entitlements, key shareholders Air New Zealand, Etihad Airways and Singapore Airlines also either provided sub-underwriting of the offer or committed to increase their exposure through cash-settled derivatives, the airline said.
Virgin said eligible retail shareholders will be invited to participate in a retail entitlement offer from November 25 to December 9 at the same price and ratio.