German travel firm TUI is set to tap shareholders again in 2023 to repay government support received throughout the pandemic, with the company’s chief financial officer Mathias Klep telling Reuters that proceeds could be €1.6bn–€1.8bn.
TUI reported annual results on Wednesday for the year to September 30, with revenue almost quadrupling and a “solid and good” 2023 expected, according to CEO Sebastian Ebel.
Revenue was €16.54bn for the year and Ebit was €320m, compared with 2021 revenue of €4.73bn and an Ebit loss of €2.01bn. Its 2022 net loss narrowed to €277.3m from €2.47bn. In 2019 revenue was €18.93bn, Ebita was €768.4m and net profit was €416.2m.
The rights issue will need shareholder approval at the AGM in February.
TUI has tapped equity markets repeatedly to repay state aid received during the pandemic.
TUI completed a €544.6m rights issue in January 2021, followed by a €400m convertible bond issue in April and wrapped up another rights issue for €1.126bn in the final quarter of the year.
In May, TUI picked up another €425.2m from a 10% accelerated primary raise.
TUI shares are down more than 41% this year although the shares have been climbing since closing at €1.21 in early October. The shares closed on Wednesday at €1.587, down 7.7%.