Powered by MOMENTUM MEDIA
subscribe to our newsletter

NAB closer to Great Western sale after pricing IPO

NAB is one step closer to offloading US lender Great Western Bank (GWB) after floating the bank on the New York Stock Exchange at US$18 per share.

As announced on August 29, NAB plans to sell 100 per cent of its ownership of GWB over time, subject to market conditions.

The progressive sale of GWB is expected to increase the group’s Common Equity Tier 1 capital ratio, however the recognition and timing of this benefit remains subject to APRA’s determination.

Yesterday’s offer comprises 16 million shares or 27.6 per cent of GWB’s outstanding common stock at a price of US$18 per share.

Gross proceeds realised by NAB will be US$288 million.

Advertisement
Advertisement

NAB has also granted the underwriters a 30-day option to purchase up to an additional 2.4 million shares of GWB’s common stock.

After the completion of this offering NAB will beneficially own 72.4 per cent of GWB’s outstanding common stock (or 68.2 per cent if the underwriters’ option is exercised in full).

“Today is an important step in the next stage of our strategy in focusing on building a stronger core Australian and New Zealand franchise,” NAB Group chief executive Andrew Thorburn said.

“While the price is lower than expectations the IPO had strong demand despite the recent volatility in the US equities market,” Mr Thorburn said.

“Pleasingly, the deal attracted strong representation from a broad range of quality investors with the book well covered,” he said.

PROMOTED CONTENT


“We are now on our way towards executing our plan to sell 100 per cent of GWB.”

GWB’s common stock is expected to begin trading on the New York Stock Exchange (NYSE) on 15 October 2014 US time, under the ticker symbol ‘GWB’.

NAB closer to Great Western sale after pricing IPO
mortgagebusiness

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.