Singapore Airlines Ltd.’s shares surged the most in more than three decades on bets that ongoing fund raising will help the carrier survive as lockdown restrictions ease worldwide from Italy to the U.S.
Its share price, adjusted for the planned rights issue, soared as much as 21%, the most since October 1987. It pared its advance to 11% this afternoon. The company unveiled in March plans to raise about S$8.8 billion ($6.2 billion) by rights issue and convertible bonds to contend with the devastating impact of the coronavirus pandemic. Investors had until Tuesday to buy the stock to be entitled to any rights.
“The reopening of economies coupled with the billions of dollars Singapore Air has raised will help it recover some of the lost ground,” said Justin Tang, head of Asian Research at United First Partners. “The fact that investors including Temasek are subscribing rights and other instruments of the company shows it is not a lost cause.”