Air NZ rights issue raises $185.5m

Air New Zealand's rights issue to raise funds for fleet upgrades closed oversubscribed on Friday, raising $185.5 million.

The airline said it received and accepted applications equal to 139.79 million new shares worth $181.73 million, with another 2.92 million new shares worth $3.8m accepted under the over-subscription facility.

Air NZ said the new shares would be allotted on December 8 and they were expected to begin trading on the NZSX on December 10.

The Crown, as 80 per cent owner of the airline, is paying another $150 million into Air NZ, by taking up its rights under the offer.

Air NZ shares were 2c higher at a two-month high of $1.70 in early trade today.

- NZPA