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The Webjet Limited (ASX:WEB) share price has crashed today

travels shares
Credit: Roger Schultz

Crashing or plummeting are not words you want to associate with anything airline related, but that’s exactly what’s happened to the Webjet Limited (ASX: WEB) share price today.

Webjet’s share price is down 7.4% to $11.95 at the time of writing with a notice on the registry today that it had successfully completed an institutional entitlement offer and raised $92 million failing to impress investors.

The institutional component had strong support from institutional shareholders, with a 97% take-up rate.

Webjet was placed into a trading halt on November 5 while it launched its capital raising to fund its Destinations of the World (DOTW) acquisition.

The total transaction value of the DOTW acquisition is US$529 million.

The travel sector is reeling from the Corporate Travel Management Ltd (ASX: CTD) short seller debacle, but for all intents and purposes Webjet looks like a future growth stock star and is certainly a threat to Flight Centre Travel Group Ltd (ASX: FLT).

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Returns as of 6th October 2020

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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