- Earlier today, MyState (MYS) entered a trading halt before announcing an $80 million capital raise
- Broken down, the finance stock will launch a $20 million institutional placement and a partially underwritten one-for-6.6 institutional and retail entitlement offer to raise $60 million
- Up to 18.6 million new shares will be issued at $4.30 per share which represents an 11.3 per cent discount to MyState’s last closing price of $4.85 on May 21
- The money will be used to accelerate MyState’s growth strategy
- MyState remains in a trading halt with shares last trading at $4.85 on May 21
MyState (MYS) entered a trading halt earlier today ahead of a capital raise.
While the finance stock detailed the capital raise would be in the form of a placement and institutional entitlement offer, MyState quickly announced the remaining details.
MyState plans to raise up to $80 million to accelerate its growth strategy which can be broken down into four categories: culture and capability, customer experience and acquisition, distribution, and operations.
The $80 million raise will be split up into a $20 million institutional placement and a partially underwritten one-for-6.6 pro rata accelerated non-renounceable institutional and retail entitlement offer to raise $60 million.
Up to 18.6 million new shares will be issued at $4.30 per share which marks a 9.6 per cent discount to the theoretical ex-rights price of $4.76 and an 11.3 per cent discount to MyState’s last closing price of $4.85 on May 21.
All shares issued under the placement and entitlement offer will qualify for the final dividend that’s expected to be announced with MYS’ full year results in August. The dividend is expected to be at least 12.5 cents per share.
“Our focussed and accelerated growth strategy builds on MyState’s strong financial position and leading customer NPS to access growth opportunities via a strong digital offering. We see significant opportunity in the current market to rapidly grow our business,” CEO and Managing Director Melos Sulicich said.
Over the next four years, the company hopes for accelerated home loan and retail deposit growth while maintaining asset quality, improved operating leverage (cost-to-income ratio), return on equity accretion as capital is deployed and sustainable growth in earnings per share.
Results of the placement and institutional entitlement offer will be announced on May 26 and new shares will settle on June 1 and begin trading the following day. The retail component of the entitlement offer will be open from May 31 to June 21 and new shares will settle on June 25 and commence trading on June 29.
MyState remains in a trading halt with shares last trading at $4.85 on May 21.