Investors could buy up to the end of trading this week to join the Air New Zealand share register by 7pm Tuesday and be eligible for the rights offer, which opens Wednesday and closes on May 2.
The airline's number of shares on issue will triple to three billion, and its share price is likely to fall to around the theoretical ex-rights price of 81c a share.
Air New Zealand expects to record a loss of less than $800m for its 2022 financial year, and its $1.2b capital raise matches Auckland International Airport's as the biggest in New Zealand market history.
Dan Stratful, investment adviser with Forsyth Barr, said "it's a lot of money and the shares fell as investors priced in the dilution affect of the rights offer. Monday trading will see the shares go ex-rights and the price could fall further."
Stratful said the offer price had to be attractive to complete the deal. "The good thing is that existing shareholders have been given first dibs to buy the new shares. Often with a capital raising new investors (institutions) are given the first opportunity followed by the shareholders (retail)."
He said there is still uncertainty in the markets as Russia-Ukraine peace talks failed overnight but at least they are still talking and negotiating.
The oil price fell to just under $US101 a barrel, and government bond yields eased slightly.
Market leader Fisher and Paykel Healthcare's rebound stalled when it fell 48c or 1.93 per cent to $24.35 on trade worth $35.29m.
Stratful said when Fisher and Paykel's share price was more than $30 it was trading at a lofty valuation but it was a quality company showing strong growth.
"Now that it no longer has the Covid tailwinds, Fisher and Paykel has come back to a reasonable value."
Auckland International Airport was up 13c to $7.83 on trade worth $57.48m as the mid-April deadline draws closer for the reopening of the border to Australian visitors.
Retirement village operators had a better day, with Ryman Healthcare up 12c to $9.38 and Summerset Group Holdings increasing 15c to $11.75.
Chorus, up 13c to $7.40, has submitted its first price-path compliance statement to the Commerce Commission, forecasting regulated fibre revenue of $657m for the 2022 calendar – below the maximum allowed of $692m.
Meridian, so volatile for a stable energy stock, climbed 10c or 2.02 per cent to $5.05 on no apparent news. Contact was up 7c to $8.15.
Synlait Milk gained 10c or 3.12 per cent to $3.31 on the eve of reporting its latest financial result; Fletcher Building increased 7c to $6.38; EBOS Group was up 47c to $41.47; and Delegat Group collected 15c to $13.20.
NZME continued its rise, climbing 6c or 3.64 per cent to a new high of $1.71; Livestock Improvement Corporation was up 8c or 4.85 per cent to $1.73; Pushpay Holdings increased 4c or 3.64 per cent to $1.14; and Enprise Group rose 20c or 20 per cent to $1.20.
Restaurant Brands was down 21c to $13.84; a2 Milk declined 8c to $5.64; Hallenstein Glasson decreased 11c to $6.49; and Millennium & Copthorne Hotels New Zealand fell 7c or 2.72 per cent to $2.50.
Renamed Cooks Coffee Company declined 2.5c or 5.38 per cent to 44c after its consolidation of 15 shares into one for each shareholder.
Tourism Holdings, down 9c or 3.05 per cent to $2.86; has obtained more time from the Australian Competition and Consumer Commission to provide further information on its merger with Apollo Tourism & Leisure.
Cannasouth increased 4.5c or 13.85 per cent to 37c after telling the market it is beginning cultivation of its first full-scale commercial crop of high-grade medicinal cannabis flower.
Ampol Australia's purchase of Z Energy at $3.78 a share has passed the Takeovers Panel "no objection" test, and now only needs approval from the Overseas Investment Office and final High Court orders. Z Energy's share price was unchanged at $3.75.
