Jazeera Airways gets nod to raise capital

27 August 2012

The rights issue is likely to take place in the fourth quarter

Jazeera Airways’ plan to raise capital by 91 per cent through a rights issue has been approved, the Kuwait-based private airline said on 25 August.

The plan was endorsed by an Emiri decree, a mandatory step in Kuwait for companies operating in sectors that are deemed to be of ‘national interest’.

Jazeera Airways will raise capital to KD42m ($149m) through a rights issue of 200 million shares to existing shareholders at a nominal value of 100 fils a share.

The rights issue is likely to take place in the fourth quarter of this year.

In July, Jazeera Airways announced a record profit of KD3.8m in first half of 2012, up 21.6 per cent from the same period last year. In 2011, the airline reported a profit of KD3.3m during the first six months of 2011, compared with a net loss of KD9.2m in the first half of 2010.

In May 2010, the airline undertook a turnaround plan to get the company back to profitability.

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