Jazeera Airways’ Board of Directors recommended an increase to the company’s capital in the face of the most challenging six quarters for the global economy and more specifically, the travel and tourism industry.
The Board has recommended a 10 percent increase to the current capital, from KD20 million to KD22 million subject to the approval of regulatory authorities and the company’s shareholders during the Extraordinary General Meeting. The capital increase process is expected to be completed in the coming 90 days.
The recommended increase will be covered by issuing 20 million ordinary shares for a total value of KD10 million or 500 fils per share. The total value comprises KD2 million increase to the authorized, issued and paid-up capital (at the nominal price of 100 fils per share) in addition to a total share premium of KD8 million (at the premium price of 400 fils per share).
Jazeera maintains a healthy asset base and a very strong unrestricted cash balance, which stood at KD19.7 million by the end of the 2020 financial year. The capital increase is a precautionary step to adhere to regulatory capital requirements in anticipation of a potential surge in the accumulated losses account as operations remain derailed by the prolonged closure of Kuwait International Airport.
Jazeera Airways Chairman, Marwan Boodai said: “Airlines witnessed a pandemic that suspended and limited flights around the world for more than a year. Its impact has been unprecedented. At Jazeera, we have taken precautionary measures to ensure business continuity and to safeguard our shareholders’ value.”
“As the rollout of vaccinations continue to gain momentum, we are confident that Kuwait International Airport will resume operations soon and Jazeera will be ready to serve its customers as safely and reliably as it has done in the past 15 years.”
