From the Australian today:
Webjet to trade again after its equity raising bid misfires
Webjet’s efforts to raise equity on Thursday are believed to be without success, and the company will resume trading on Friday.It is understood that the company had Goldman Sachs in its corner, but was unable to lock in an equity raising at any price.The company’s market value is currently $590m and its share price is at $3.76, crashing from a capitalisation of about $1.8bn, or $13.50 a share.The equity raising failure comes as the online travel agency remains in crisis mode due to the restrictions surrounding travel introduced by the government to curb the COVID-19 pandemic.On March 11, Webjet withdrew its earnings guidance on the back of the cancellation of near-term travel and lower booking rates.The company said it would cut costs by $10m and the board and managing director would reduce their salaries by 20 per cent.The company has $53.7m of net debt and a net debt to earnings before interest, tax, depreciation and amortisation ratio of 0.35 times.Further pain is expected in the days ahead across the retail and tourism space, as the country grinds to a halt in an effort to curb the spread of COVID-19.Another group expected to tap the market is landlords, particularly in the retail space, where their tenants are said to be asking for rent holidays up to June 30Retailers are reporting that their revenue volumes are down between 40 per cent and 60 per cent and that landlords such as the Westfield owner Scentre Group are showing a willingness to negotiate.Being closely watched are department stores Myer, which saw its shares close 44 per cent lower on Thursday at 9.5c, and David Jones, which is owned by South African-based Woolworths.
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