Budget airline Virgin Blue Holdings Ltd
(ASX:VBA) has announced the successful completion of the retail component of its entitlement offer announced on July 27.
The company says the retail offer was fully underwritten and will raise $98.3 million.
Virgin Blue says due to overwhelming demand it will scale back applications.
Virgin says eligible institutional and retail investors have taken up 1.16 billion new shares under the entitlement offer and placement and the gross proceeds of the offer are $231.4 million.
CEO Brett Godfrey says as a result of the entitlement offer, Virgin Blue is better positioned to withstand the current difficult operating environment and to take advantage of growth opportunities in the sector as they arise.
Virgin Blue reported a loss of $160 million in 2009 following four years of profits.
