Consi­dera­ble over-demand in Icelanda­ir Group of­fer­ing

Over 9,000 subscriptions were received for the total amount of ISK 37.5 billion.

The Board of Directors of the company has accepted bids in the amount of ISK 30.3 billion and decided to avail itself of the authorisation to increase the amount of offer in the offer to a total of 23 billion shares.

Warrants of 25% are attached to new shares, or 5.75 billion shares.

Allocation was in accordance with the terms and conditions of the offer.

Demand from general investors was high and their shareholding in the company will be around 50% following the offering.

Shareholders in the company will number over 11,000 after the offering.

The underwriting commitment was not activated, due to over-subscription.

Investors can obtain information about allocation in the offering no later than at the end of business on 18 September 2020 by going to offering platform on Landsbankinn’s website and logging in with the same identification they used to register subscriptions. Due date for payment of subscriptions as well as the final date for payment is 23 September 2020.

Paid shares will be delivered once the increase in share capital has been registered in the Register of Enterprises. The shares will be issued through Nasdaq CSD Iceland at the latest on 9 October 2020. The aim is to deliver the new shares before that time, having regard for regulatory restrictions. The new shares are expected to be listed on the primary market of OMX Nordic Exchange in Iceland no later than on 12 October 2020.

Shares in the company are 5.4 billion and total equity, following the offering, will amount to around ISK 28.4 billion. Allocation and registration of warrants will take place no later than 15 October 2020. Landsbankinn Corporate Finance and Íslandsbanki Corporate Finance co-managed the offering.

Bogi Nils Bogason, CEO of Icelandair Group:

“We are humbled and thankful for the trust shown in Icelandair Group in the offering, the final step towards financial restructuring of the company. A broader shareholder group, stronger balance sheet and flexible routes will allow us to respond quickly once demand picks up again. We intend, hereafter as heretofore, to ensure a robust offering of air connections to and from Iceland, and across the Atlantic, with all the benefits and economic advantages that entails for Iceland.

Employees from all levels of Icelandair Group have in the past months moved mountains to affect the financial restructuring of the company, servicing customers in the midst of a pandemic and simultaneously pursued new opportunities, such as in rent and cargo flight, to utilise infrastructure and increase revenue. The company’s strength lies not least in the experience and knowledge of its employees, and the strength the team shows in adversity. I am both proud and thankful for that team. A new chapter in the 80-year history of the company is beginning and I welcome the more than 7000 new shareholders”.