- Macquarie Group (MQG) completes a $1.5 billion institutional placement
- The group will issue 7.7 million shares to institutional investors at $194 each — a 1.9 per cent discount to MQG’s last closing price on October 28
- Shares issued under the placement will rank equally with existing Macquarie shares on issue and be eligible for the dividend for the first half of the 2022 financial year
- Eligible shareholders in Australia and New Zealand can apply for up to $30,000 worth of shares via a non-underwritten share purchase plan
- Shares in Macquarie Group are down 0.4 per cent to $197.03 each
Shares in Macquarie Group (MQG) were trading slightly lower on Monday despite the group completing a $1.5 billion institutional placement.
The financing was conducted through a book-build and will see 7.7 million new fully paid ordinary shares issued to Macquarie’s institutional investors at $194 each.
Notably, the issue price represents a 1.9 per cent discount to the group’s last closing share price on October 28.
Macquarie said eligible shareholders who bid for an amount less than or equal to their pro-rata portion of placement shares had been allocated their bid in full, with roughly 90 per cent of the shares allocated to existing Macquarie investors.
Shares issued under the placement will rank equally with Macquarie’s existing ordinary shares on issue from allotment. The shares will also be entitled to the dividend for the first half of the 2022 financial year as a result of their allotment prior to the dividend record date.
Macquarie’s chief executive Shemara Wikramanayake said the group was pleased with the placement’s success and the strong show of support from Australian and international institutional shareholders.
“Macquarie remains committed to investing in the growth of our business in a disciplined manner,” Ms Wikramanayake said.
“The capital will provide us with additional flexibility to invest in new opportunities where expected risk-adjusted returns are attractive to our shareholders, while maintaining an appropriate capital surplus.”
Macquarie said the placement did not require shareholder approval and that settlement was expected to take place on November 3, ahead of trading on the ASX commencing November 4.
As previously announced, the company said it would offer eligible shareholders in Australia and New Zealand the opportunity to participate in a non-underwritten share purchase plan (SPP) with a maximum application size of $30,000 per shareholder.
The SPP offer is anticipated to open on November 8 and close at 5pm Australian Eastern Daylight Time on November 26.
Despite being precluded from participation in the placement, Macquarie’s directors and staff are able to participate in the SPP.
Shares in Macquarie Group were trading 0.4 per cent lower at $197.03 each at 2:10 pm AEDT.