Aeroflot Boeing 777-300ER. Photo: Kochan Kleps (@dose.of.aviation)

MIAMI – Russian flag carrier Aeroflot (SU) has announced its plans to raise 80bn Rubles (US$102m) through a secondary public offering (SPO). This comes after the state-controlled airline recovers from the grounding of its fleet due to COVID-19.

Aeroflot CEO Vitaly Saveliev said the following, “The additional equity capital raised via this Offering will put the Aeroflot Group on a firm footing as we continue our recovery from the impact of COVID-19 and build for the future.”

Aeroflot Boeing 777-300ER. Photo: Kochan Kleps (@dose.of.aviation)

Dividing up the Shares of the Airline

Aeroflot also said that up to 39bn Rubles in shares will be bought by institutional investors. The rest will come from existing shareholders including the Russian government who aim to keep their 51.2% stake in the company.

Aeroflot currently plans to release 1.7 Billion shares. The Russian government is expected to purchase 869.9 million of these shares. SU is planning to use the proceeds of this move for deleveraging and operate purposes.

At the end of August, SU’s Board of Directors re-elected Evgeny Ditrich, Russian Minister of Transport, as Chairman. In September, the airline announced it would restart international flights from Moscow to Bishkek (FRU), Minsk (MSQ), Nur-Sultan (NQZ), and Seoul (ICN). It also performed the maiden flight of its first A321neo.

Featured image: Aeroflot Boeing 777-300ER. Photo: Kochan Kleps (@dose.of.aviation)