By MAIMBOLWA MULIKELELA –
FASTJET, African budget airline has raised gross proceeds of about US$75 million through a share issue to fund its expansion and acquire aircraft.
The London-listed company’s share slumped nearly 13 per cent on April 1, 2015 to one pence, the price at which each of the 5 billion new shares were placed.
The funds from the offering, which represents about 75 per cent of Fastjet’s enlarged share capital, will help the company add new international routes and expand in Kenya, South Africa, Uganda, Zambia and Zimbabwe, it said.
According to Fin24.com, the company raised gross proceeds of about US$75 million through a share issue to fund its expansion programme in Africa including Zambia.
The company, which aspires to be the first pan-African low-cost carrier, also intends to use excess funds to start a programme to acquire used Airbus A319 aircraft.
Fastjet chief executive, Ed Winter said Easy Group, the investment vehicle of Haji-Ioannou, bought stock worth £5 million or 10 per cent of the new shares.
The company, which started flying in Tanzania in November 2012, said its plans to expand in Africa would give it up to 210 million potential customers, or a fifth of the continent’s population.
“To service that population, Fastjet would have to boost its aircraft fleet from the three it currently has to 34 strong by 2018,” Mr Winter said.
