(May 6): Singapore Airlines Ltd.’s shares surged the most in more than three decades on bets that ongoing fund raising will help the carrier survive as lockdown restrictions ease worldwide from Italy to the U.S.

Its share price, adjusted for the planned rights issue, soared as much as 21%, the most since October 1987. The company unveiled in March plans to raise about $8.8 billion by rights issue and convertible bonds to contend with the devastating impact of the coronavirus pandemic. Investors had until Tuesday to buy the stock to be entitled to any rights.

See also: Singapore Airlines to raise $15 bil via rights issue of new shares, mandatory convertible bonds

sq bloomberg

“The reopening of economies coupled with the billions of dollars Singapore Air has raised will help it recover some of the lost ground,” said Justin Tang, head of Asian Research at United First Partners. “The fact that investors including Temasek are subscribing rights and other instruments of the company shows it is not a lost cause.”

See also: Right issue price 'in line with market precedents', says SIA

Airline stocks globally have been getting a lift on a slew of reopening news. Indonesian operator PT Garuda Indonesia Persero saw its shares jump 13% in the past two trading sessions. Qantas Airways Ltd. rose on Tuesday despite warnings of a years-long revival.

The pandemic has plunged global aviation into an unprecedented crisis. Airlines could require as much as US$200 billion in government aid and bailout measures this year to survive, according to the International Air Transport Association.

The carrier can raise as much as $9.7 billion in 10-year mandatory convertible bonds and has also arranged a $4 billion bridge loan with DBS Bank Ltd. to support near-term cash requirements.

The company didn’t immediately reply to a text message seeking comment on the funding plan.

“The air corridors will open eventually and Singapore Air is better funded than the competition,” said Nirgunan Tiruchelvam, an analyst at Tellimer.