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Should investors take up their AIZ Rights?

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Should investors take up their AIZ Rights?

James, As a holder of AIZ, they have significantly declined since the announced rights offer of 2:1 @ AUD49c. If you held, would you partake in the rights offer? What are the pros & cons please? I am of the mindset I should partake & take up the rights. With thanks, Bernie

Answer

Hi Bernie,

You may have missed my answer on this one last week!

“This $1bn capital raise looks set to be at a maximum of a 35% discount to its previous price, a hefty discount due to the large size of the raise and clearly deemed necessary to prove successful.

However the stocks trading down less than 12% for the week so don’t panic!  This is not one for MM as we prefer our position in Qantas (QAN) but with the strengthened balance sheet AIZ should be able to push forward through 2022.”

The stocks had a volatile ride this week but it’s still does less than 10% over the average price of recent weeks, still not one for us.

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Air New Zealand (AIZ)
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