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Fastjet brings in just £162,754 from open offer

Published: 10:54 08 Aug 2016 EDT

fastjet
The group is a low cost carrier focused in Africa

Shares in Africa focused carrier Fastjet PLC (LON:FJET) flew 2% higher as it revealed it raised a total of £15.2mln in a previously announced fundraise to bankroll a fresh strategy.

It proposed a placing to raise £15mln at 50p a share and an open offer to bring in up to around £4.2mln.

Under the open offer to existing shareholders, the firm received acceptances for  325,508 shares therefore raising £162,754, it said in a brief statement today.

A general meeting today also saw a plan to reorganise the share structure approved. The firm is to reduce the nominal value to 1p from £1 .

Following admission, the group will have 96/7mln shares of 1p each in issue, of which 1 share is held in treasury.

As reported in July, the firm planned to raise nearly

£20mln to bankroll a fresh strategy under new chief executive Nico Bezuidenhout, sending shares up 73%.

The company plans to use the cash to fund a new business plan already launched by Bezuidenhout, who does not join officially until August.

Bezuidenhout has instigated a review of the fleet, both the size and type of aircraft operated, the routes flown and the relocation of the head office to Africa.

Fastjet has faced difficulties including lacklustre international business traffic caused by the commodity price downturn, as well as competitive resistance from African national flag carriers.

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