Auckland Airport's $200 million non-underwritten Retail Offer

Auckland Airport (ASX:AIA) has announced the opening of its up to $200 million non-underwritten Retail Offer as part of its equity raise initiative. The Retail Offer is a component of the equity raise initiative announced on 16 September 2024, which also included a fully underwritten $1.2 billion placement of new shares to existing institutional and other select investors in New Zealand, Australia, and other jurisdictions. Eligible existing Auckland Airport shareholders with a registered address in New Zealand or Australia will receive their application forms to apply for up to a maximum of NZ$150,000 / AU$45,500 of new Auckland Airport shares, free of any brokerage, commission, and transaction costs in accordance with the terms and conditions in the Retail Offer Document.

Executive Commentary on Retail Offer

Dr. Patrick Strange, Chair of Auckland International Airport Limited, expressed his pleasure in providing eligible shareholders the opportunity to subscribe for new ordinary shares in Auckland Airport through the Retail Offer. The Retail Offer is part of Auckland Airport's equity raising initiative aimed at reducing net debt, repaying bond maturity, and providing flexibility to fund the company's planned capital investment program over PSE4 and PSE5 while maintaining its A- S&P credit rating and dividend policy. The initiative also allows all New Zealand and Australian eligible shareholders to participate in the capital raising and acquire new shares at the same price or lower than the Placement, without incurring brokerage costs.

Summary of Retail Offer and Outlook

The Retail Offer by Auckland Airport presents an opportunity for eligible shareholders to participate in the company's equity raise initiative, allowing them to acquire new shares at a favorable price. The initiative aims to reduce net debt, repay bond maturity, and provide flexibility to fund the company's planned capital investment program over PSE4 and PSE5 while maintaining its A- S&P credit rating and dividend policy. The Retail Offer is expected to close on 4 October 2024, with the new shares to be issued under the Retail Offer ranking equally with Auckland Airport's existing ordinary shares. The company encourages shareholders to carefully consider the opportunity and seek financial or investment advice before making an investment decision.