Rocket Maker Avio Seeks €400 Million New Funds for Expansion (1)

Italian rocket maker Avio SpA will seek to raise as much as €400 million ($469.5 million) of new equity from its shareholders to strengthen its satellite-launch business.

Avio’s board met Thursday and unanimously approved the new business plan, according to a statement. The proposal for a capital increase will be submitted at a shareholders meeting on Oct. 23.

The announcement confirms a Bloomberg report earlier this week on the plan to raise capital. Avio’s largest shareholder, the Italian defense group Leonardo SpA, isn’t expected to participate in a potential capital raise, people familiar with the matter have said.

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