Aeroflot announces start of share offering

Aeroflot Russian Airlines has officially announced the beginning of an offering of up to 1.7 billion new shares.

"PJSC Aeroflot today announces the launch of a capital increase by placement of up to 1,700,000,000 new ordinary shares," the airline said in a press release.

"The final number of shares placed in the offering, the price per share, and the total amount raised as a result of the offering will be determined during the offering process and announced in due course," the company said.

Current shareholders can exercise their pre-emptive rights to buy the shares until October 1, 2020, inclusive, the company said. The payment period will be established and announced separately following approval of price per share by the company's board of directors.

VTB Capital is acting as sole global coordinator and bookrunner of the offering. White & Case LLP is acting as international legal counsel.

"As we emerge from the COVID-19 crisis, additional equity capital will put the Aeroflot Group on a firm footing as we continue to build for the future, and allow us to take advantage of this long-term structural growth opportunity," Aeroflot CEO Vitaly Savelyev said.

"We believe that an open market-based process is the best way to allow all our shareholders to participate in our transformation and growth story as we complete our recovery and resume expansion," Interfax cited him as saying.