Alliance Aviation Services, which operates as Alliance Airlines, has completed a A$40 million capital raising to strengthen its balance sheet as it pushes ahead with a turnaround and restructuring programme. The package combines an institutional placement and entitlement offer that delivered about A$33 million, with the remaining retail component closing at only about A$636,000 after limited shareholder participation.
The retail entitlement offer attracted 113 shareholders who subscribed for 909,226 new shares, equal to a take-up rate of about 10.6%. The balance of the retail shares will go to sub-underwriters. The fresh equity is intended to improve liquidity and give the Australian regional carrier more financial flexibility as it works through its broader reset.
The raising was structured as a fully underwritten A$40 million issue launched in late August, with the new shares issued at A$0.70 each. Alliance has been pursuing a turnaround focused on balance sheet repair, cost discipline and asset sales, after outlining a broader deleveraging plan earlier this year.