Hertz to offer up to $1 billion in shares | Calamatta Cuschieri

Market summary

The Maltese market closed in the red on Friday, with the MSE total index ending the session 0.569% lower to 8,292.737 points. The best performer was MaltaPost plc with its surge of 3.45% to close at 1.20, followed by 0.87% rise of RS2 Software plc with a closing price of 2.32. The biggest fall of 7.69% was seen from Medserv plc which closed at 0.60, followed by HSBC Bank Malta plc with its drop of 4.08% to 0.94.

European stocks rebounding at the end of the week following the thrashing endured during the prior session - but only feebly. By the end of trading, the Stoxx 600 was just 0.28% higher at 354.06, alongside a 0.18% dip for the German Dax to 11,949.28 while the FTSE Mibtel adding 0.43% to 18,888.16.

U.S. stocks closed higher Friday in choppy trading as Wall Street attempted to recover from Thursday’s steep losses but left the benchmark indexes with their biggest weekly losses since March 20. The Dow Jones Industrial Average gained 1.9%, to close at 25,605.54. The S&P 500 index added 1.3% to 3,041.31 and The Nasdaq Composite Index climbed 1%, to 9,588.81.

Bankrupt car rental firm Hertz to offer up to $1 billion in shares

Car rental firm Hertz Global Holdings Inc said it would sell up to $1 billion in shares, cashing in on a huge speculative rise in its share price since filing for bankruptcy late last month.

Since filing for bankruptcy on May 22, Hertz’s shares have risen more than threefold in value. The stock jumped 157% in the week ended June 5, their biggest weekly percentage gain on record.

Hertz is now seeking approval from a bankruptcy court to potentially sell 246.78 million unissued shares to Jefferies LLC.

Hertz said the net proceeds would be used for general working capital purposes.

The company filed for Chapter 11 protection in a U.S. bankruptcy court in Delaware after talks with creditors failed to result in much needed relief.


This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.