Virgin Australia shares are getting smashed

Roberto Serra/Iguana Press/Getty Images

Shares in Virgin Australia fell hard this morning after announcing a major equity raising.

A short time ago, the shares were down more than 14% to $0.252.

Virgin today announced an equity raising of $852 million through a 1 for 1 entitlement offer to shareholders at $0.21 a share, a 28.8% discount to yesterday’s close of $0.295.

In total, the latest offer and the previously announced placement to HNA Innovation for $159 million will raise $1.011 billion in new equity capital.

NOW READ: Virgin Australia is raising $1 billion in new equity

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