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The global tourism industry may be stagnant, but travel company Webjet (ASX: WEB) has made the financial equivalent of an overbooking in its latest capital raising.
The Melbourne-based travel services aggregator received so many applications for a top-up facility that it will now have to give back $14.5 million in refunds.
After exceeding expectations by raising $231 million in an institutional offer on 2 April, Webjet decided to lift the retail entitlement offer by close to 14 per cent at $115 million.
That amount was exceeded yesterday after applications were made for $86 million in shares under the retail offer, as well as a further $46.7 million in eligible applications for the top-up facility.
Reaching a combined $132.7 million worth of applications, top-up facility limits under the scheme have meant Webjet is scaling the figure back to around $118.2 million.
"It has been necessary to scale back applications for approximately 27.5 million additional shares applied for under the top-up facility," the company said.
"All eligible applications for additional new shares will be scaled back by approximately 31 per cent.
"The scale back will be done on a pro-rata basis across all applications. Refunds totalling approximately $14.5 million in respect of scaled back applications under the top-up facility will be dispatched to retail shareholders as soon as practicable."
Updated at 12:01pm AEST on 23 April.
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