NZX error results in trading halt on Air NZ rights, wrong share price showing


Air New Zealand’s capital raise allows eligible shareholders to buy two extra shares for every one share they already own.

MARTIN DE RUYTER/STUFF

Air New Zealand’s capital raise allows eligible shareholders to buy two extra shares for every one share they already own.

Air New Zealand’s share price fell by as much as a third on Monday morning, but an error by the New Zealand stock exchange (NZX) has led to the wrong share price showing, and a trading halt on newly issued rights.

Air New Zealand shares are trading at 88 cents on the NZX, down from the $1.16 they closed at on Friday, according to the market operator’s website.

The price for Air New Zealand rights (AIRRG), which were supposed to commence trading on the market on Monday morning, is showing as 10c on the NZX website.

At 9.59am Air New Zealand and NZX said the New Zealand stock exchange (NZX) reference price for Air New Zealand shares and the rights was incorrect on www.nzx.com.

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They said the correct reference prices were 77.5c for Air New Zealand shares and 24.5c for the rights.

At 11.26am Air New Zealand and NZX said the rights were placed in a trading halt regarding the manner in which NZX set up the rights instrument.

Last week Air New Zealand said it would raise capital from shareholders via a $1.2b rights offer.

The rights are priced at 53c a share.

Those who owned shares in Air New Zealand as of market close on Friday 1 are able to buy two extra shares at 53c for every one share they already own.

Market announcements from Air New Zealand and NZX at 10.12am said a halt was off, with trading resumed in Air New Zealand shares at 10.15am.

However, there was no announcement that a trading halt was in place.

The 11.26am announcements said no trading halt was applied to Air New Zealand securities.

At 11.47 another note was issued by Air New Zealand and NZX saying the reference price for each right has been updated to 49c.

The price adjustment had been made to reflect the correct ratio of one right being exercised to two Air New Zealand shares, it said.

Trading in rights resumed at 11.55am.

NZX said incorrect NZX reference prices were solely due to an internal NZX system error.

“NZX apologises for any inconvenience caused.”

About 2.3 million new Air New Zealand shares will be issued under the rights offer, representing about a 200 per cent increase in existing shares.



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