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MyState ends institutional component of capital raise

The non-major bank has announced the completion of the institutional component of its $80-million equity raising announced earlier in the week.

MyState Ltd has announced the completion of the institutional placement and institutional component of its one for 6.6 pro rate accelerated non-renounceable entitlement offer of fully paid ordinary shares in relation to its capital raise worth around $80 million.

Earlier this week, MyState announced that it is aiming to raise up to $80 million to grow its loan book and business through the broker channel.

MyState said that it would undertake a $20-million fully underwritten institutional placement and a partially underwritten one for 6.6 pro rata accelerated non-renounceable entitlement offer to raise gross proceeds of around $60 million. The entitlement offer is underwritten to $30 million.

MyState managing director and CEO Melos Sulicich said the capital raise is aimed at growing the lender’s retail funding book and having the balance sheet capacity to distribute more home loans, principally through the broker channel.


The lender has now announced that an institutional offer raised around $31.3 million at $4.30 per new share, while around $11.3 million was raised under the institutional entitlement offer, which represents a take-up from eligible institutional shareholders of around 96.0 per cent.

Around $20.0 million was raised under the placement through the issue of around 4.7 million new shares, the lender added.

The new shares subscribed for under the institutional offer are expected to settle on 1 June 2021, with allotment and normal trading on the ASX to begin on 2 June, MyState said.

New shares issued under the institutional offer will rank equally with existing MyState shares on issue, it added.

New shares in respect of institutional entitlements not taken up under the institutional entitlement offer and new shares that would have represented the entitlements of ineligible institutional shareholders were offered and placed to institutional investors, MyState said.


The placement and the institutional component of the entitlement offer closed on 25 May, the bank said.

MyState to begin retail raise

The lender has also announced that eligible retail shareholders in Australia and New Zealand can participate in the retail component of the entitlement offer (retail entitlement offer).

This will open on 31 May and close on 21 June, it said.

Shareholders outside of Australia and New Zealand will not be eligible to participate in the retail entitlement offer (among other criteria), according to MyState.

Commenting on the completion of the institutional offer, Mr Sulicich said: “We are delighted with the strong level of support we have received from both existing and new institutional investors as we embark on the next phase of MyState’s growth.”

“As a trusted, respected and established digital challenger brand with demonstrated capability in execution and a strong balance sheet, we will continue delivering for our customers, shareholders and our people.”

[Related: MyState eyes loan growth with $80m capital raise]

MyState ends institutional component of capital raise
MyState ends institutional component of capital raise

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Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

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