Last month, BOQ launched a $275-million capital raising, comprising of:
- a fully underwritten $250-million institutional share placement; and
- a non-underwritten share purchase plan (SPP) under which BOQ is targeting to raise approximately $25 million.
According to the bank, the capital raising will be used to strengthen its balance sheet, provide an increased buffer above the Australian Prudential Regulation Authority’s (APRA) “unquestionably strong” common equity tier 1 (CET1) capital ratio benchmark, and to create “additional capacity for BOQ to implement its strategic priorities”.
BOQ has since completed its placement, successfully raising $250 million and resulting in the issuance of 32.1 million new fully paid ordinary shares in BOQ at a price of $7.78 per new share.
The lender has now opened the second phase of its capital raising, aimed at securing $25 million in additional funds.
The issue price per SPP share will be the lesser of:
- the placement price; and
- the volume weighted average price of BOQ shares traded on the ASX during the five trading days up to, and including, the SPP closing date less a 2 per cent discount, rounded down to the nearest cent.
Eligible BOQ shareholders and eligible custodians can now apply for up to $30,000 of new fully paid ordinary shares.
The SPP will also be offered to eligible custodians to participate in the SPP on behalf of certain eligible beneficiaries.
The SPP follows the institutional placement completed on 26 November 2019.
BOQ noted that while it is aiming to raise approximately $25 million, it may scale back applications or issue a higher amount depending on demand for the shares.
[Related: BOQ completes first phase of capital raising]