- AMP has completed a $650 million capital raise that was announced only yesterday
- A total of 406.3 million new fully paid shares were issued to new and existing investors priced at $1.60
- This capital raise comes after AMP reported a $2.3 billion first-half loss
Just yesterday AMP announced its plans to issue a $650 million capital raise and it was announced today the Placement was completed.
Approximately 406.3 million new fully paid shares were issued to new and existing investors with shares priced at a 6.7 per cent premium of $1.60.
AMP’s Chief Executive Francesco De Ferrari is pleased with the support they received.
“We are pleased with the strong support we have received from investors. The funds raised will allow us to immediately implement our transformational strategy to create a simpler, higher-growth and higher-return AMP that’s focused on customers,” he said.
Settlement of the new shares is expected to occur on August 13 with allocation and trading expected to occur on August 14. These new shares issued under the Placement will rank equally with the existing shares on issue.
Also announced yesterday AMP will undertake a share purchase plan with a booklet outlining the details being dispatched to eligible shareholders on the 16th.
Shareholders will have the opportunity to subscribe for up to $15,000 worth of new shares without suffering any brokerage or transaction costs.
On Tuesday AMP requested a trading halt so it could announce this capital raise after posting a $2.3 billion first half loss.
The loss comes from a series of factors primarily reflected from banking royal commission which uncovered systematic misconducts in its wealth advisory and superannuation businesses.
Yesterday AMP also announced it will try again to sell its sickly life insurance business, AMP Life, to Resolution Life.
Changes had to be made to the initial agreement after the first attempt was blocked by New Zealand regulators.
AMP shares are up 8.67 per cent today trading for $1.88 in a market cap of $5.097 billion.