Icelandair Group’s public offering ended at 16:00 on 17 September 2020. In the offering ISK 20 billion new shares were offered for sale. The offering was oversubscribed by 85% with strong demand from both institutional and retail investors. The offering price was fixed in both order books at ISK 1.0 per share.

• Total subscriptions were over 9 thousand and amounted to ISK 37.3 billion.
• The Company’s Board of Directors decided to accept subscriptions amounting to ISK 30.3 billion and to increase the offering size to a total of ISK 23 billion shares.
• Total allocated warrants, amounting to 25% of 23 billion, come to ISK 5.75 billion shares.
• Allocation was in line with the terms of the offering.
• Existing shareholders who participated in the offering received full allotment in line with their existing stake.
• Subscriptions from around 1,000 employees were received and allocated in full.
• Subscriptions equal to ISK 1 million or lower were allocated in full.
• Proportional reduction of around 37% was applied to other subscriptions in both order books.
• Strong demand from retail investors increases their ownership stake to 50% in the Company.
• The number of shareholders following the share offering will exceed 11,000.
• Due to oversubscription the underwriting was not utilized.

Investors can obtain information about allocation in the offering no later than at the end of business on 18 September 2020 by going to the Subscription system on Landsbankinn’s website, https://www.landsbankinn.is/utbod/icelandair, and logging in with the same identification they used to register subscriptions. Due date and final date for payment of subscriptions is 23 September 2020.

Paid shares will be delivered once the increase in share capital has been recorded in the Register of Enterprises. According to legal deadlines the shares will be issued through Nasdaq CSD Iceland at the latest on 9 October 2020 with the aim of delivering the new shares before that date. Trading of the new shares on Nasdaq Iceland is expected to commence no later than 12 October 2020.

Total number of outstanding shares in Icelandair Group is 5.4 billion. Following the share increase the total number of shares will amount to 28.4 billion. The warrants will be allocated and listed no later than 15 October 2020. Landsbankinn Corporate Finance and Íslandsbanki Corporate Finance were Co-Managers of the offering.

Bogi Nils Bogason, President & CEO of Icelandair Group:

“We are thankful and honoured by the support that investors and the Icelandic public demonstrate by their strong participation in the share offering that marks the final step in the financial restructuring of Icelandair Group. With a broader investor base, strong balance sheet and by using the flexibility of the Icelandair route network, we will be in a good position to scale up quickly as soon as markets open again. We are committed to ensuring continued efficient air services to and from Iceland as well as offering attractive options across the Atlantic, benefiting the Icelandic economy and society.

Today we started a new chapter in the over 80-year history of the Company. I would like to thank our employees for their sheer dedication and endurance during the past months and at the same time welcome over seven thousand new shareholders to the Company.”