TUI shares are down almost 20 percent today. The price at noon is 4.389 euros, 1.061 euros less than yesterday. However, the minus is technical in nature. Investors don’t have to worry about bad news.
TUI’s extraordinary general meeting on January 5 approved a capital increase. Investors can purchase 25 new papers for 29 old shares. The subscription right price is EUR 1.07 per share. Exactly this price was automatically deducted from the TUI course in the morning. Thus the shares are actually quoted almost at the previous day’s level.
Almost 509 million new shares will be offered in the capital increase. This brings about 544 million euros gross into the travel company’s cash register. The aim is to bridge the difficult months ahead until the summer business begins. The tourism industry has been particularly hard hit by the pandemic and lockdowns. Accordingly, TUI has already received state support several times. Without these rescue packages, the situation would be almost impossible to control.