Iceland’s PLAY Secures Approval for Share Capital Increase and Public Offering

PLAY, the Icelandic low-cost carrier, has received approval from its annual general meeting to initiate a significant financial maneuver aimed at bolstering its financial standing. The airline is set to increase its share capital by up to 1.2 billion shares, with each share having a nominal value of ISK1 króna (USD 0.0073). This strategic move paves the way for a dual financial injection comprising contributions from existing shareholders and a new public offering of shares, a decision that was first revealed in February.

In a detailed plan, PLAY has outlined the issuance of one million shares at a subscription rate of ISK4.50 (USD0.0327) per share. This issuance is designated for subscription commitments totaling ISK4.5 billion (USD32.7 million) from its current shareholders and additional investors. Furthermore, the airline is poised to offer up to 111,111,112 shares at the same subscription rate in a public issue scheduled for April 9 to 11. This public offering aims to attract up to ISK500 million (USD3.6 million) in new capital.

To address potential oversubscription scenarios and maintain shareholder equality, PLAY has established a priority system for current shareholders, excluding those who have already committed to the new share subscription, ensuring a fair allocation process.

While PLAY initially planned to list its shares on Iceland’s main stock exchange by the end of February, the airline has adjusted its timeline. It now anticipates the uplisting of its shares to the Nasdaq Main Market in Iceland to be completed before the end of the second quarter, with preparations reportedly on track.

In a prudent move to safeguard its financial liquidity amid these significant developments, PLAY announced in mid-February a temporary pause in fleet expansion. This decision reflects the airline’s strategic focus on financial stability and growth, as it navigates the challenges and opportunities of the competitive aviation market.

This upcoming public offering and share capital increase represent key milestones for PLAY, aiming to strengthen its financial foundation and support its operational and strategic objectives in the Icelandic and broader European aviation markets.