In a bid to fund its purchase of stake in two Queensland airports, Auckland International Airport announced its intention to raise capital worth $126.4 million through a completely underwritten 1-for-16 pro rata entitlement offer.

Auckland and Manukau City Councils stated they would be purchasing new shares worth $28 million, a buy that would help the Auckland City Council retain its stake of 12.71 per cent in the airport and Manukau City its 10 per cent stake.

With the institutions confirming their support, Auckland International Airport can now fund its foray into the Australian airspace with its acquisition of a $166.7 million worth 24.55 per cent holding stake in the Queensland airports of Cairns and Mackay.

The unusual route to capital raising taken by the airport is proving to be highly speedy and beneficial. The institutional aspect is set to be approaching completion and the retail investment phase would commence then and remain open till midway next month.

According to Manukau mayor Len Brown, “Our shareholding enables us to continue to have a say in the direction and development of the company. One only has to see the tremendous development at and around the airport over the past decade to understand how important it’s continued growth and vitality is to the local economy”.