The price for the issue, through which the low-cost airline Norwegian hopes to raise between 300 and 400 million Norwegian kroner, has been set at 1 kroner according to a press release on Tuesday evening. The share, which traded at levels around 7.50 kroner last week, plunged to 4.25 kroner in Wednesday's trading.
The prospectus for the share issue reveals new details on how management envisions the ”new” Norwegian after the coronavirus crisis. It has been known previously that the number of aircraft is to be reduced from just over 160 to around 110, but it now emerges that Norwegian also intends to reduce personnel costs by approximately 35 percent.
The prospectus also shows, as the company previously communicated, that the 2.7 billion Norwegian kroner that the company expects to receive from the Norwegian state's rescue package will help the company stay afloat for the rest of 2020. However, if the company's winter lay-off continues beyond the turn of the year, it states that more support will be needed. Norwegian estimates that it needs between 300 and 500 million Norwegian kroner per month in the first quarter of 2021 to survive.
Up until the beginning of May 2021, the total amount is NOK 2 billion that Norwegian considers it needs, in addition to the currently outstanding Norwegian state support.
”If the company does not gain access to this additional working capital, the company risks being liquidated or declared insolvent,” the prospectus states.
Source: di.se
