Shareholders of Kuwait’s Jazeera Airways (J9, Kuwait) have approved a 10% capital increase from KWD20 million dinars (USD66.4 million) to KWD22 million (USD73.1 million) in a precautionary step to adhere to regulatory capital requirements as operations remain derailed by the prolonged closure of Kuwait International Airport due to COVID-19.
The decision, taken during an extraordinary general assembly on May 19, 2021, is still subject to final approvals by regulatory authorities. It follows a recommendation by Jazeera’s Board on April 14, 2021, in the face of the COVID-19 crisis.
“Despite the challenging conditions, Jazeera maintains a healthy asset base and a very strong unrestricted cash balance, which stood at KWD17.6 million (USD58.5 million) by the end of the first quarter of 2021 and is set to be increased by an additional KWD10 million (USD33.2 million) post the capital increase, which will set the company up for a solid resumption of operations once travel restrictions in Kuwait are relaxed,” the airline said in a statement.
“The capital increase was covered by issuing 20 million ordinary shares with an offering price of par value of 100 fils (KWD0.10) (USD0.33) each in addition to a share premium of 400 fils (KWD0.40) (USD1.33) per share or a total price of 500 fils (KWD0.50) (USD1.66) per share,” the statement read.
The company was also in the process of submitting the public offering prospectus to the Capital Markets Authority (CMA) per applicable bylaws.
Meanwhile, the Kuwaiti Civil Aviation Authority has extended its existing entry ban for foreigners until further notice. Effective May 22, Kuwaiti citizens, their first-degree relatives, and domestic workers are also banned from international travel if they have not been vaccinated against COVID-19.
