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Aeroflot Shares Fell 4% At The Opening Of Trading On The Moscow Stock Exchange On The News Of The Additional Issue

Aeroflot Shares Fell 4% At The Opening Of Trading On The Moscow Stock Exchange On The News Of The Additional Issue

Shares of the airline "Aeroflot" at the opening of trading on the Moscow exchange fell by 4.2% to the closing mark of the previous session and at the moment reached 78.5 rubles per paper, according to data from the trading platform at 10:01 Moscow time.

By 10:17, the airline's shares had slowed to 1.24% and were trading at 80.94 rubles per paper. At the same time, in minimum values, the share price reached 78.22 rubles (-4.56%).

Aeroflot's quotes are declining amid news that the airline plans to conduct an additional issue to replenish its authorized capital by at least 1.7 billion rubles.

Besides, Aeroflot announced the extension of flight cancellations and ticket sales to more than 80 foreign cities until August 31 due to the adverse epidemiological situation in them. Countries with which flights have already been resumed (Turkey, Great Britain, Tanzania) are not included in the list. At the same time, the list includes Zurich, where flights are allowed from August 15. The company clarified that passengers who purchased tickets in the period before May 1 and with the date of the planned trip until August 31, will be able to issue a ticket voucher.

As part of a set of measures aimed at improving the financial stability of the Aeroflot Group, the issue of making changes to the Charter in terms of increasing the number of declared shares was considered. The number of declared (but not placed) shares in the Charter is proposed to be increased to 1,950,000,000 from the current 250,000,000 shares to ensure the possibility of increasing the authorized capital by placing additional shares, subject to the relevant decision of the extraordinary General meeting of shareholders. The General Meeting of shareholders was recommended to approve the proposed changes to the Charter of PJSC Aeroflot. The change will take effect after the relevant decision is made by the General Meeting of shareholders and the changes to the Charter are registered with the Federal tax service.

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