Jazeera Airways boosts capital to $148.9m
Kuwait, January 20, 2013
Kuwait-based budget carrier Jazeera Airways Group said it has successfully raised its capital by 74 per cent to KD42 million ($148.9 million) through a rights issue, which was oversubscribed 2.25 times.
The rights issue comprising 178 million shares were available to shareholders from December 16, 2012 at a nominal value of 100 Kuwaiti fils till December 31, said the airline in its statement. The additional funds that resulted from the oversubscription will not be called for, it added.
Commenting on the successful issue, Jazeera Airways Group chairman Marwan Boodai said, “The oversubscription was one of the most successful rights issues in Kuwait in recent years, breaking the $150 million barrier. This result reflects a clear investor appetite for being part of our company’s success story and statement of confidence in our management team.”
In November, Jazeera had posted a record Q3 net profit of KD7.6 million, up 24.6 per cent from the same period last year, as well as its best nine-month results for the year of KD11.4 million, up 23.6 per cent from same period last year, remarked Boodai.
The group’s nine-month earnings in 2012 exceeded full-year 2011’s recording earnings by KD0.8 million, he added.
Jazeera Airways Group comprises a fleet of 15 A320 aircraft, 12 of which are already delivered and placed. The remaining aircraft are scheduled for delivery in 2013 and 2014.
The 12 delivered aircraft are distributed between its airline business (Jazeera Airways, operating seven aircraft), and its fully-owned leasing business (Sahaab Aircraft Leasing, operating five aircraft). Sahaab has assets placed with Virgin America and SriLankan Airlines.
Jazeera Airways is an IATA member airline and operates one of the youngest Airbus A320 fleet in the Middle East.-TradeArabia News Service