The travel group TUI's share price is falling by almost 9 per cent in early trading on Friday. The share price collapse comes after TUI announced that the group is planning a large new share issue.

TUI, whose shares are listed in both London and Germany, wants to raise €1.8 billion (over SEK 20 billion) in new capital. The aim is to repay state support loans from the pandemic and strengthen the balance sheet, according to TUI.

During the pandemic, TUI received more than 4 billion euros in support, but around half has not yet been repaid.

TUI's largest shareholder, Unifirm, owns 30.9 percent of the company's shares. However, Unifirm will not participate in the new share issue, according to TUI, as the company is controlled by Russian billionaire Aleksej Mordasjov, who is on the EU's sanctions list due to Russia's war against Ukraine.

Source: TT-DI.SE