Coronavirus: Singapore Airlines taps investors for up to US$10.5 billion
- Fundraising is being underwritten by the airline’s biggest investor, state-owned Temasek Holdings
- Company’s shares slid as much as 10.5 per cent on Friday following a rare trading halt on Thursday
Singapore Airlines (SIA) said it would tap existing investors for up to S$15 billion (US$10.48 billion) through the sale of shares and convertible bonds to offset the shock to its business from the coronavirus outbreak, sending shares down as much as 10.5 per cent on Friday.
“This is an exceptional time for the SIA Group,” SIA chairman Peter Seah said in a statement late on Thursday.
SIA’s shares went into a rare trading halt earlier in the day after plunging to their lowest in 22 years as investors feared the pandemic will have a deep impact on the company.
Many governments worldwide have already stepped in to help airlines hammered by the virus-induced travel slump, with the United States offering US$58 billion in aid as widespread travel restrictions force many carriers to ground fleets and order thousands of workers on unpaid leave to keep afloat.
SIA has said it will cut capacity by 96 per cent, ground almost its entire fleet and impose cost cuts affecting about 10,000 staff in what it called the “greatest challenge” it has ever faced.
