Regional Express (Rex) Australia’s largest independent regional airline continues to break new ground with a very successful tour of twelve of its regional centres with a special road show presentation on its Initial Public Offering of shares.
A team of Board Members and senior management led by Deputy Chairman, the Hon John Sharp, conducted briefings to interested retail investors and Rex staff on the offering.
“It is quite rare for a Company to take such a road show to regional centres in Australia and yet again this is a reflection of the commitment Rex has for the bush,” John Sharp said.
Centres visited included Lismore, Armidale, Dubbo, Orange, Albury, Wagga Wagga, Griffith, Mildura, Port Lincoln, Mount Gambier and Burnie. Rex also visited Adelaide.
Geoff Breust, Rex’s Managing Director said the Company was offering 35 million ordinary shares at $1. The funds are to be used to purchase a 50 percent share in overnight air freight and charter airline Pel-Air, purchase of additional aircraft, purchase of engines and spares, repayment of loan funds and working capital.
“Regional Express Holdings Limited’s capitalisation post the offering will be $115m and the Company will be debt free. Our move to make the public offer is to enable the group to diversify and gain the benefits of synergies with Pel-Air and to place us in a position to take up opportunities as they arise,” Mr Breust said.
“Rex has shown strong growth and excellent profits during a period rising fuel prices. We are very focused on cost control while maximizing the benefits of our economies of scale. Our three base strategies of on time reliability, affordable air fares and close partnership with our regional communities are the platform for our success.”
Rex made profits of $11.3m last Financial Year and is forecasting $15.1m in the current year. The Prospectus is available on the Rex web site at www.rex.com.au. Further information or a hard copy can be obtained by calling 1300 799 367. Investors should read the Prospectus and seek their own financial advice before applying for shares. Applications may only be made on the application form included in the Prospectus. The Offer closes on 28 October unless it is oversubscribed where it may be closed earlier.
The Offer has been fully underwritten by Tricom Equities. An allocation of 20 million shares to institutional investors was oversubscribed by 2.5 times. The remaining allocation has also received very strong interest.
“We have been quite overwhelmed by the strength of the response to the offering. While we have provided priority to our staff and our frequent flyers from regional centres, the level of overall interest has been fantastic,” Mr Breust said.
Rex flies 33 routes to 27 regional destinations in south-eastern Australia from Sydney, Melbourne and Adelaide. It operates a fleet of 29 aircraft.
--00--
Media contact: Sara-Jane Uden 0402 438 361
|