Auckland Airport also told the market it has signed a contract with Hawkins, worth $800m, to build the new domestic terminal as part of an integrated development with the international terminal services.
Matt Goodson, managing director of Salt Funds management, said the market was aware that Auckland airport needed to raise equity but it came a little earlier than people expected.
“It was certainly a fundraising day on the local market and I think the airport will get its capital raising away given the discount (to the share price),” he said.
“It’s a little bit tricky for one party, Auckland Council (which has an 11% shareholding). I don’t know whether they will participate in the raising – they didn’t last time.”
Goodson said the sheer size of the raising will have index implications, and Auckland Airport will likely increase its weighting on the NZX 50 (there will be more shares on issue).
Leading energy stocks Meridian and Mercury came under selling pressure on the fundraising day, falling 24c or 3.76% to $6.14 and 20c or 3.25% to $5.95 respectively at 5.23pm. Contact was down 9c to $8.21.
Cancer diagnostic firm Pacific Edge surged 2.1c or 19.27% to 13c. Goodson said this was a delayed reaction to last week’s announcement that the company was very hopeful its Cxbladder testing will be included in the American Urological Association’s standard of care guidelines.
The association’s decision will be helpful in the Novitas outcome over whether Pacific Edge should continue to receive Medicare payment, Goodson said. “There is an indefinite delay in the Novitas determination and in the meantime Pacific Edge continues to be paid by Medicare for its testing.”
Synlait Milk increased 2.5c or 5.81% to 45.5c after telling the market it has refinanced its banking facilities with a new syndicate including include ANZ, Bank of China, Bank of Communications, China Construction Bank, HSBC, Industrial and Commercial Bank of China, Kiwibank, and Rabobank.
The new funding arrangements total $450m made up of working capital with a peak of $160m, revolving credit of $205m, and a term loan of $75m. The new banking facilities are in addition to the $130m shareholder loan.
The bank refinancing was a condition of a2 Milk, down 23c or 3.73% to $5.93, supporting Synlait’s recapitalisation, which shareholders will vote on this week.
Briscoe Group was up 10c or 2.06% to $4.95; Ventia Services gained 8c to $4.88; and NZ King Salmon Investments increased 1.5c or 6.25% to 25.5c.
Ryman Healthcare, down 1c to $4.69, has appointed former Channel Infrastructure boss Naomi James as the new chief executive, starting on November 4. James was previously on the Central Adelaide Health board.
Summerset declined 19c to $11.70; Mainfreight decreased $1.29 or 1.76% to $72.50; Freightways eased 27c or 2.78% to $9.43; Skellerup was down 12c or 2.45% to $4.78; Vista Group fell 22c or 7.36% to $2.77; and Sky TV shed 9c or 3.36% to $2.59.
AFT Pharmaceuticals was down 9c or 2.71% to $3.23; Scales Corp declined 10c or 2.7% to $3.60; ikeGPS fell 5c or 8.06% to 57c; and 2 Cheap Cars decreased 4c or 5.19% to 73c.
Property stocks Argosy shed 4c or 3.45% to $1.12; Precinct was down 2.5c or 1.89% to $1.295; Vital Healthcare Trust eased 4.5c or 2.3% to $1.91; and Kiwi decreased 2.5c or 2.6% to 93.5c.
Solution Dynamics was up 3c or 2.5% to $1.23 after declining Being AI due diligence following its interest in making a partial or full takeover. Solution said the Being proposal was incomplete and highly conditional, and one hurdle was that Solution shareholders would not receive cash for exiting their holdings. Being AI was unchanged at 5.8c.
