AFR Mention

I understand it's the only profitable airline in the world atm.
I've not a been a shareholder for long but I'll be taking up my entitlements in the cap raise.
From what I'm also told by a pilot, a very well run company.
As long as the mining sector keeps ticking along, so will this.

Take flight! Alliance Aviation taps Ords for $122m raising

Sarah Thompson, Anthony Macdonald and Tim Boyd

Jun 11, 2020 – 8.37am

Contractand charter flights operator Alliance Aviation was getting in front of funds onThursday with a $122 million capital raising to expand its fleet size.

AllianceAviation was making a trip to equity capital markets on Thursdaymorning. Peter Braig

The offer was structured as a $92million underwritten institutional placement and a non-underwritten sharepurchase plan to raise the balance.

The deal was priced at $2.95 ashare, which represented a 4.8 per cent discount to Alliance's $3.10 last closeand a 4.4 per cent premium it the ten-day VWAP, according to terms sent tofunds.

It is understood Qantas Airways –which nabbed a 19.9 per cent stake in Alliance with the help of Macquarie's equities desk in February last year – would take up its full allocation in the raising.

Ord Minnett was sole lead manageron the deal and underwriter to the placement. It was calling for bids into theplacement by 4pm on Thursday.

Fundswere told the fresh capital would used to invest in growth initiatives,primarily in the form of buying additional aircraft to build out its fleet.

Alliance has a fleet of 24 FokkerF100 planes, 13 Fokker 70LR jet aircraft and five Fokker 50 turboprops, withfive more aircraft in storage.

The $395 million company wasfounded in 2002 and primarily serves the fly in, fly out charter flight market,servicing the resources sector and the like.

Despite a COVID-19 dip in February and March,Alliance shares are trading at record highs and are up 26.5 per cent in thepast 12 months.