FRANKFURT, (Reuters) – Holiday group TUI announced Wednesday that it has raised approximately 425 million euro ($447m) to fund its capital growth. This was in order to repay parts of a German bailout it received during the pandemic.

TUI took out loans totalling 4.3 billion euro and was bailed by multiple German governments. COVID has stopped holidays. However, it still aims to be profitable again in 2022. People rushed to book tours after lifting restrictions.

According to the company, it sold 162,291,441 shares of new stock to institutional investors for 2.62 dollars per share. This is 10% lower than Tuesday’s close price. It was its third capital rise since January 2021.

TUI Germany’s stock, which is listed on the TUI Stock Exchange was at 11.2% as of 0845 GMT.

TUI stated that it will use proceeds from the sale and cash reserves to repay the second installment of a silent participation by the German government. It also plans to reduce the outstanding credit lines of KfW, the state lender.

According to the Stifel brokerage, “The timing appears sensible,” ahead of what is expected to be an excellent summer season and before what might prove more challenging in winter.

($1 = 0.9511 euros)