- The Bank of Queensland (ASX:BOQ) has successfully completed a $250 million institutional share placement
- The Queensland banker entered a trading halt yesterday before the news broke of its intention to raise the funds
- CEO and Managing Director George Frazis claims the funds will increase BOQ’s buffer above APRA’s benchmark and lead strategic transformation
- The company is also seeking a share purchase plan of $25 million
- Despite the news, shares are down 5.56 per cent today and trading for $8.16 each
The Bank of Queensland has successfully completed a fully underwritten $250 million institutional share placement.
The Queensland banker entered a trading halt yesterday before the news broke of its intention to raise $250 million.
The placement was conducted by bookbuild and will result in the issue of approximately 32.1 million new fully paid ordinary shares in BOQ at a price of $7.78 per new share. This figure represents the top of the bookbuild price range.
“We are pleased with the strong support we have received from investors,” BOQ Managing Director and CEO George Frazis said.
“The funds raised will further increase BOQ’s buffer above APRA’s ‘unquestionably strong’ benchmark and provide BOQ with additional capacity to support implementation of our strategic transformation,” he added.
George was appointed company CEO and Managing Director in June of this year. Despite only holding his role at BOQ for six months, he brought nearly two decades of banking and finance experience during a critical time for Australian banks.
The Bank of Queensland is facing a significant transformational period of digital innovation that is focused on mobility and personalisation for the customer experience.
New shares under the placement are expected to settle on Thursday November 28 and will commence trading the following day.
BOQ is also seeking to raise $25 million through a non-underwritten share purchase plan.
A SPP booklet is expected to be sent to eligible shareholders on December 3.
However, BOQ shares are down 5.56 per cent today and trading for $8.16 each at 1:00 pm AEDT.