Bank of Queensland has successfully raised nearly $90 million from its retail shareholders after completing an oversubscribed share placement plan.
The completion of the retail offer means the bank has now raised $339.7 million from investors following a $250 million institutional placement earlier in December. The bank had been originally looking to raise $25 million from its retail investors.
Bank of Queensland plans to use the capital raised to strengthen its balance sheet and provide an increased buffer above its capital ratio requirements set by the Australian Prudential Regulation Authority. It will also use some of the capital to implement its strategic priorities.
Under the retail offer, around 12.3 million ordinary shares will be issued at $7.27 a share, representing a small, 2 per cent discount to the five-day volume weighted average price of Bank of Queensland’s existing shares between December 16 and December 20.
The bank decided to accept all applications for shares under its retail offer rather than conducting a scale back. Valid applications were received from approximately 6803 eligible shareholders.
The shares are expected to be issued on January 2 and will commence trading on January 3.
The successful raising is a bright spot in a dim year for Bank of Queensland.
The regional bank’s shares have suffered after positing disappointing profits, cutting its dividend and warning of a weaker bottom line result next year.
Source: Thanks smh.com