BizTrailBlazer-Blog-Rolls-Royce-Shares-Hit-a-New-Low-Due-to-3-billion-Equity-Raise

Rolls Royce Shares Hit a New Low Due to $3 billion Equity Raise

Shares of Rolls Royce, Britain’s one of the most well-known engineering names has sunk to its lowest level since 2004, just after the British company confirmed that it was considering a rights issue of up to 2.5 billion pounds, after months of speculation about its finances.

Rolls Royce has put on a statement in response to different media stories, confirming the amount of new equity it might look to raise.

Due to the Covid-19 pandemic, most of the airlines around the globe had to ground their fleet, which eventually has blown a major hole in the engine maker’s pocket. Why? Airlines pay the company depending on how many hours its engine fly. However, due to the groundings around the world, Rolls Royce accumulated a massive loss of 5.4 billion pounds in the first half of 2020.

Rolls Royce also confirmed that it was reviewing funding options, “we are evaluating the merits of raising equity of up to 2.5 billion pounds, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.”

However, shares of the British company traded down to as low as 10% to 161 pence, losing 76% of value in the year to date.

Share Now

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp

get your ad spaces

BizTrailBlazer---400X700-Ads

explore other articles

2020, is a year that will be hard to forget for most of us. Just after the start of this fateful year, we lost one …

This morning, Microsoft announced its plans to acquire ZeniMax Media Inc. for as much as $7.5 billion in cash. ZeniMax is the parent company of …

In this list, we have tried to list out the top 7 most famous women entrepreneurs of 2021. Even a few decades ago people hardly …

Since the last few years, organizations are trying to move away from paper documents and opting for digitized document control systems. The Covid-19 pandemic has …

Few days after the banning of PUBG Mobile in India, the PUBG Corporation has decided to severe ties with Tencent. In a PUBG Corporation statement, …

ByteDance, TikTok’s parent company said that TikTok Global will soon launch a public offering of shares in order to enhance the governance structure and transparency …

Are you searching for the term ‘how to learn Python? or how to learn Python from scratch? Learning a programming language can be a roller …