Air France-KLM (AIRF.PA) on Tuesday launched a capital hike at 4.84 euros ($5.76) per share as part of a 4 billion-euro recapitalisation to shore up its finances amid the COVID-19 crisis.
The airline said in a statement it could raise up to 1.036 billion euros if demand was sufficient to exercise an option to increase the size of the rights issue.
It added that the subscription pricing amounted to an 8.85% discount to Monday’s closing price.
Shares of the Franco-Dutch company were down 4.33% at 5.08 euros at 0810 GMT, the worst performer on France’s French SBF 120 index (.SBF120).
Air France-KLM said on Monday it will expand its partnership with China Eastern Airlines (600115.SS), as the Chinese carrier committed to subscribe to the issue. It will hold less than 10% of the firm’s capital.
The French state will cover as much as two-thirds of capital increase.