Europe’s largest low-cost carrier said Ryanair has raised $ 400 million from shareholders to strengthen its balance sheet in the wake of the Kovid-19 pandemic.

Shares of the company advanced further Dublin trade Today.

The move adds to the fact that a relatively small amount of debt and a lack of exposure to badly affected long-term business-class markets means a larger cash collection for an airline that is not affected by a pandemic than its competitor.

Ryanair offered 35,242,291 shares, 3.2% of the total share capital, at $ 11.35 per share. This represents a discount of about 2.6% to yesterday’s closing price.

The airline said it was raising funds to capitalize on the opportunities created by the Covid-19 crash and risk debt repayment over the next 12 months.

“Looking ahead over the next year, we expect Ryanair’s low – cost model to have significant growth opportunities as competitors shrink or fail or take over government – bailed vehicles,” the airline said.

These opportunities will give Ryaner more financial viability.

Ryanair flew less than half the number of passengers in August of the same month last year, but one of the industry’s strongest balance sheets was $ 3.9 billion on June 30, with unaccounted Boeing 737 jets and $ 7 billion.

However, it has $ 1.9 billion in debt maturing next year, including 8 850 million in bonds and $ 600 million raised in the UK’s Covid Corporate Financing Facility.

Bernstein analyst Daniel Roska described the placement as “a small increase for a large company”.

“They don’t need the money, and the amount involved is small,” Roska said.

“Insulation against winter chill means defending the BBB rating and getting shareholders to support the group, however, given the upcoming refinancing needs,” he added.

IAG, a rival airline group owned by Air Lingus and British Airways, also announced plans to raise $ 2.75 billion from shareholders in July.