Infrastructure

Leading the largest follow-on equity raising in New Zealand

Macquarie Capital acted as joint lead manager, underwriter and book runner to Auckland International Airport Limited’s (Auckland Airport) equity raise - New Zealand’s largest follow-on equity issuance in NZX history1

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Sector Infrastructure
Sub-sector Transport
Location New Zealand

Opportunity

Auckland Airport is New Zealand’s largest and busiest airport, acting as the gateway to its largest city and connecting the country to the rest of the world - more than three quarters of all international visitors to New Zealand arrive through it.2

The airport required funds for its planned $NZ6.6 billion aeronautical capital investment programme to transform the airport precinct, upgrade key facilities, improve resilience and provide capacity for future growth.

With limited new listings of size and continued ‘take-privates’, listed investors are actively seeking to deploy funds into well-positioned growth opportunities.

Approach

Macquarie Capital supported Auckland Airport to successfully navigate a number of external considerations and launch an equity raise of $NZ1.4 billion, comprising an underwritten placement of $NZ1.2 billion and a non-underwritten retail offer to raise up to $NZ200 million.3

Macquarie Capital has advised more than ten airport transactions across Australia and New Zealand since 2019, providing an unparalleled understanding of aviation drivers and investor insights. Macquarie Capital was able to leverage our deep expertise, leading Equities franchise and presence in region to position, structure and market the offer - effectively, ensuring alignment with both stakeholder priorities and market conditions. 

Outcome

The equity raise was the largest follow-on equity issuance in New Zealand’s history and was strongly supported by investors.1

It was structured to enable an equitable outcome for existing shareholders, allowing them to at least take up their pro-rata share. With strong basis for the equity raise, both the placement and retail offer were oversubscribed supporting the issue and the share price performance afterwards. 

The proceeds generated enable Auckland Airport to fund its planned aeronautical capital investment programme and additional non-regulated opportunities, while maintaining its A-credit rating and dividend policy.

The programme includes replacing aging infrastructure with modern, fit for purpose facilities to account for the expected growth in passenger demand; implement critical resiliency upgrades to the airfield and runway; and improve connectivity between international and domestic jet services, with aims to reduce minimum connection times between flights. It also will create a strong pipeline of work in Auckland – the terminal integration upgrade is expected to create 2,500 jobs at its peak.4

Artist impression of Auckland Airport’s development plans

#1

largest follow-on equity raising in New Zealand’s history1

$NZ1.2 billion

underwritten placement

2,500 jobs

expected to be created through the airport upgrade4

  1. Bloomberg, as at 28 November 2024
  2. Digital future of travel at airports: navigating the evolving cyber threat landscape, International Airport Review, Jan 2024
  3. AIA - announces $1.4 billion equity raise, NZX, 16 Sept 2024
  4. Building for the long haul: Auckland Airport to partner with Hawkins on construction of new domestic jet terminal, Auckland Airport, 16 Sept 2024

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