Avio shareholders approved a proposal to initiate a €400 million capital increase during an extraordinary shareholders’ meeting on Thursday. The company’s board was also delegated the authority to execute a future capital raise without seeking further shareholder approval.
The Italian rocket builder announced in early September that its board had approved the capital raise as part of a new ten-year business plan. The plan is focused on meeting rising demand in the global space and defence markets, which includes the construction of a new tactical propulsion systems manufacturing facility in the United States.
According to a 23 October update, more than 99% of shareholders voted in favour of the capital raise proposal. Under the approved proposal, Avio will have 12 months to complete the capital raise through the issuance of new ordinary shares, with existing shareholders given the first opportunity to purchase them. The company’s board was given the power to determine the final size of the raise, up to €400 million, as well as the price of the new shares, whether a share premium will be applied, and the number of shares to be issued.
The capital increase, however, remains dependent on the company receiving the necessary approvals from the relevant authorities and, according to the company’s update, “market conditions.”
Shareholders also approved a second measure delegating authority to the Board of Directors for a potential future capital increase. This mandate allows the board to raise capital of up to 10% of the company’s existing share capital at any point before 23 October 2030 without requiring further shareholder approval.
Critically, this future raise could be executed without offering pre-emption rights to existing shareholders, allowing the company to offer the shares to new investors upfront. While the proposal passed, it did so with a narrower margin, securing the approval of 77% of shareholders present.
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