- Bank of Queensland’s (BOQ) share purchase plan, which was announced on November 25, has opened today
- Eligible BOQ shareholders can now apply for up to $30,000 of new fully paid ordinary shares without incurring brokerage or transaction costs
- The SPP follows a $250 million placement completed last month to drive transformational growth and to strengthen BOQ’s balance sheet
- The banker’s shares have seen an overall slump in the last month after disappointing yearly results
- Shares in the Bank of Queensland have dropped 2.46 per cent and are trading for $7.54 each
Bank of Queensland’s (BOQ) share purchase plan, which was announced on November 25, has opened today.
Eligible BOQ shareholders can now apply for up to $30,000 of new fully paid ordinary shares without incurring brokerage or transaction costs.
Shareholders can apply for shares in the amount of $1000, $2500, $5000, $10,000, $15,000, $20,000, $25,000 or $30,000.
The share purchase plan (SPP) follows the $250 million institutional placement completed on November 26 2019.
The placement was raised to fund strategic growth during a transformational period of digital innovation.
In addition, the retail banker intended to raise $25 million through a non-underwritten share purchase plan.
Participation is optional and open to shareholders at the record date and whose address on the BOQ Share register is in Australia or New Zealand.
The issue price per share will be the lesser of $7.78 per share and the price that is a 2 per cent discount to the volume-weighted average price of shares traded on the Australian Securities Exchange during the five trading days up to the SPP closing date, which is expected on December 20.
Despite the share purchase plan booklet opening today, BOQ’s share price is down.
In fact, the banking giant’s shares have seemed to fall into a slump in the past month. This may be attributed to the disappointing yearly results released in mid-October which then led to the Board cutting its dividend down to 31 cents per share. This brought its full-year dividend to 65 cents per share, down 14.5% year on year.
“We expect lower year-on-year cash earnings in FY20 with revenue and impairment outcomes in line with FY19, higher post-Hayne regulatory and compliance costs, and increased operating expenses related to our investment in technology,” CEO George Frazis said.
The SPP closes this afternoon at 5:00 pm AEDT.
Shares in the Bank of Queensland have dropped 2.46 per cent and are trading for $7.54 each at 1:03 pm AEDT.