Norwegian seeks to stabilise finances with share issue | News

Norwegian has raised nearly US$170 million in a share issue as it continues to battle intense competition in the transatlantic market.

The low-cost carrier said it may also go to the market again soon as it seeks to stabilise its finances.

The move added 9.67 million new shares, an increase of 27.6 per cent on the carrier’s current base of 35 million shares.

Each was sold for a price of 155 Norwegian crowns, a 9.7 per cent discount to the previous closing price of 172 crowns.

Norwegian also warned of a wider-than-expected first-quarter loss.

The budget airline said first-quarter pre-tax losses would come in at 2.6 billion crowns, versus a 1.8 billion crown loss in the same period last year.

The carrier said it was being hit by high oil prices and fluctuating currencies, while financial results for 2017 recently revealed Norwegian slipped into the red.

Shares in the company have fallen by nearly a third over the past year.

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