Opodo parent eDreams ODIGEO has completed the issuing of new shares in the European OTA group raising €75 million of capital.
Priced for issue at €8.50 the 8,823,529 ordinary shares will be traded on the Madrid, Barcelona, Bilbao and Valencia stock exchanges once authorisations have been granted.
The new shares represent 7.43% of the company’s share capital prior to the capital Increase and 6.91% of the share capital following the Increase.
The firm said the additional funds will “enable eDreams ODIGEO to further bolster the business’ own capital resources in order to further support its planned strategic expansion”.
It added: “The business has achieved significant growth over the past quarters, with its trading consistently outperforming its peers and its market share expanding firmly and thereby paving the way for its next phase of growth.”
Up to €50 million of net proceeds of the capital increase will be used to reduce debt while the remaining proceeds will be reinvested for general corporate purposes.
This includes the “acceleration of the growth and further development of eDream’s Prime subscription platform.
It also expects the capital increase to further diversify its institutional shareholder which is expected to “result in increased liquidity of and trading in…listed ordinary shares”.
In a statement, eDreams said: “The company continues to be an innovation leader in the travel industry with Prime, its innovative subscription programme, and its business model.
“In the most recent capital markets day, the company demonstrated its solid performance in spite of a challenging operating environment due to COVID-19.
“As of December 31, 2021, it had achieved approximately 2.2 million Prime members, with a significant uptick in demand just six months after hitting the one million subscribers milestone in June, with membership almost tripling in just one year.”
Dana Dunne, chief executive, said: “We are delighted with the support new and existing shareholders have given us, reflecting the confidence in eDreams ODIGEO’s unique strategy, innovative vision and continued outperformance against the industry.
“The additional funds deliver greater financial flexibility and further strengthen an already solid balance sheet. Together, this will enable us to accelerate the development of our rapidly growing subscription product Prime, pursue additional growth opportunities and reinforce our positioning as one the world’s leading and most innovative travel companies.
“eDreams ODIGEO is now even better placed and in an even more powerful position to continue shaping the future of online travel and the wider e-commerce sector.
“We are looking forward to continuing to reinvent travel with our unique and technology-led proposition, thereby generating long-term value for our shareholders, team members, consumers and our business.”
Banco Santander, Barclays Bank Ireland and Deutsche Bank are acting as joint global coordinators, Banco Bilbao Vizcaya Argentaria, (collaborating with ODDO BHF) and Société Générale are acting as joint bookrunners and CaixaBank is acting as co-lead manager in connection with the offering. Lazard Asesores Financieros is acting as financial advisor to the Company.
EDreams has agreed not to issue or sell shares subject to customary exceptions, during a period of 90 days from the date of settlement of the new offering.