Rolls Royce shares (LON: RR) fell over 11% on Monday morning as the group continued media speculation of fundraising £2.5bn from investors.
As the coronavirus pandemic hits the travel sector hard, the group said it was “evaluating” raising money in order to boost finances.
Reported by the Financial Times, Rolls Royce has been hit hard by the pandemic. It has cut 9,000 roles and said it does not expect trading to reach pre-pandemic levels for another five years.
“We continue to review all funding options to enhance balance sheet resilience and strength,” said the company in a statement on Monday.
“Amongst other options, we are evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.”
In August, the group revealed a £5.4bn loss, causing shares to sink to a record low.