The bombed-out airline Norwegian continues to surge on the Oslo Stock Exchange during intense trading. The stock is up 150 percent in the last four days despite the restructuring announcement earlier this week. On Thursday, trading was temporarily halted after a 60 percent rise.
The airline Norwegian NAS is under severe pressure and this week restructuring processes were initiated in both Norway and Ireland. Despite this, investors are flocking to the stock.
On Thursday, the share saw its biggest percentage gain ever. Shortly after eleven o'clock, the share surged by as much as 60 percent to SEK 0.91. The large movements resulted in an automatic trading halt for the share, according to the Oslo Stock Exchange's new rules that are intended to calm the market in the event of large price movements.
When the trading halt was lifted, the share surged by a maximum of 76 percent before the price stabilized around an increase of around 60 percent. The share is also by far the most traded share on the Oslo Stock Exchange on Thursday. Shortly after 11 a.m., shares worth 490 million Norwegian kronor have changed hands. On the large company list, the property company Entra – in which Balder bought shares during the morning – is the most traded with 218 million kronor.
In comparison, Evolution is the most traded stock on the Stockholm Stock Exchange on Thursday, with shares worth 481 million Swedish kronor changing hands.
From low levels, the stock has now surged by 150 percent over the past four days of the week, but since the turn of the year the price is still down by over 97 percent.
On Monday, it was announced that Norwegian's Irish subsidiary has been granted bankruptcy protection by a court in the country. This means that the company will have more time to restructure its massive debts.
The following day, the company announced that it was also applying for a supplementary restructuring process in Norway. Both restructurings will not have any impact on ongoing operations.
”"A parallel restructuring under Norwegian law benefits all parties involved and increases the likelihood of a successful outcome. Our goal is to secure jobs and help secure critical infrastructure and contribute to economic growth in Norway," said Jacob Schram, CEO of Norwegian, in a comment earlier this week.
During the pandemic and the The ongoing crisis for Norwegian has seen Swedish small savers flock to the stock. At Avanza, almost 55,000 customers own Norwegian shares, and at Nordnet, the number of owners has increased by 1,100 percent so far this year.
