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ASX 200 rebounds 1.5%, Qantas drops on capital raising

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) went up 1.5% today to 5,904 points.

Investors shrugged off rising COVID-19 case numbers and sent several sectors higher today.

However, one particular ASX 200 share suffered a sharp decline of its share price.

Qantas Airways Limited (ASX: QAN) returns to trade

The Qantas share price fell 9% today after the airline returned to trade following the completion of the institutional part of its capital raising.

The ASX 200 airline announced today that it has successfully raised $1.36 billion from institutional investors with high levels of interest from both existing investors and new investors. The raising was done at a price of $3.65 per share.

Qantas Group CEO Alan Joyce said: “The fact there was significant demand for this offer shows clear support for our recovery plan and confidence in the fundamentals of this business. The plan involves some difficult decisions but we are extremely well positioned to get through this crisis and start growing again on the other side.”

Virgin Australia Holdings Limited (ASX: VAH) is about to have a new owner

The administrators of Virgin announced today announced they have entered into a sale and implementation deed with Bain Capital which will result in the sale and recapitalisation of the business.

There are minimal conditions for the deal to go ahead. One condition is regulatory approval.

No return to shareholders is anticipated. At this stage, administrators aren’t sure what the estimated return to creditors will be.

Bondholders and Cyrus Capital Partners had also put proposals to the administrators, but Bain Capital won.

TPG Telecom Ltd (ASX: TPM) gets court approval

TPG announced today that the Supreme Court of New South Wales has made orders today approving the scheme of arrangement between TPG and its shareholders.

The telco expects to lodge a copy of the orders from the court next Monday, which is when the scheme will become legally effective.

The demerger of Tuas Group, the parent company of TPG Singapore, is also expected to become effective on 29 June 2020.

TPG shares are expected to stop trading on Monday, 29 June 2020. Shares in the new combined business are expected to start trading with ordinary settlement from 14 July 2020.

ASX 200 banks rise

The banks within the ASX 200 all saw a rise today.

Commonwealth Bank of Australia (ASX: CBA) experienced a share price increase of 2.4%.

The share price of Westpac Banking Corp (ASX: WBC) went up 3.3%.

The Australia and New Zealand Banking Group (ASX: ANZ) share price climbed 3%.

National Australia Bank Ltd’s (ASX: NAB) share price grew by 2.75% today.

Smaller banks also experienced pleasing gains today. The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price grew 3.4%. The Bank of Queensland Limited (ASX: BOQ) share price rose by 2.4%. Suncorp Group Ltd (ASX: SUN) had a share price rise of 3.9% and the MyState Limited (ASX: MYS) share price climbed 1.2%.

Other strong gains on the ASX

There were several ASX 200 shares that saw solid share price growth today.

Leading the pack was diversified financial business IOOF Holdings Limited (ASX: IFL), its share price went up 8.5%.

The GUD Holdings Limited (ASX: GUD) share price went up 6.6%.

Sandfire Resources Ltd’s (ASX: SFR) share price grew by 6.2% today.

The Southern Cross Media Group Ltd (ASX: SXL) share price climbed by 5.6%.

Global retail property giant Unibail-Rodamco-Westfield (ASX: URW) experienced a share price rise of 5.4%.

Apart from Qantas, the worst performer in the ASX 200 was lithium miner Orocobre Limited (ASX: ORE). Its share price dropped 5.6%.

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Returns as of 6th October 2020

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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