Retail jumps at Macquarie offer
(3 June 2009 – Australia) Retail investors have jumped at the chance to be a part of Macquarie Group’s capital raising, with a record subscription of over three times the targeted amount.
Macquarie Group Limited (Macquarie) advised that it successfully completed its Share Purchase Plan (SPP), announced on 1 May, receiving more than 55,000 applications from eligible shareholders for approximately A$669 million of new Macquarie ordinary shares.
The applications received equate to around 40 percent of the current shareholder base. The result is reportedly the strongest ever retail response to a capital raising.
Despite Macquarie's initial target to raise A$200 million, the bank said that it would accept all valid applications received under the offer, resulting in the allotment of a maximum of 25.2 million new Macquarie shares.
For the first time, the retail placement exceeded the institutional private placement, which raised A$540 million for Macquarie, announced on 1 May.
Macquarie’s chief financial officer, Greg Ward said that the capital raised would be used to further enhance Macquarie’s strong capital position and provide flexibility to continue to take advantage of current and future market opportunities.
Macquarie also noted that if the Federal Government’s proposed amended legislation concerning executive termination benefits and the proposed changes to the taxation of employee share schemes announced in the Federal Budget go ahead, around A$500 million of retained staff profit share would be applied to equity participation through the issue of new Macquarie shares.
The applications received equate to around 40 percent of the current shareholder base. The result is reportedly the strongest ever retail response to a capital raising.
Despite Macquarie's initial target to raise A$200 million, the bank said that it would accept all valid applications received under the offer, resulting in the allotment of a maximum of 25.2 million new Macquarie shares.
For the first time, the retail placement exceeded the institutional private placement, which raised A$540 million for Macquarie, announced on 1 May.
Macquarie’s chief financial officer, Greg Ward said that the capital raised would be used to further enhance Macquarie’s strong capital position and provide flexibility to continue to take advantage of current and future market opportunities.
Macquarie also noted that if the Federal Government’s proposed amended legislation concerning executive termination benefits and the proposed changes to the taxation of employee share schemes announced in the Federal Budget go ahead, around A$500 million of retained staff profit share would be applied to equity participation through the issue of new Macquarie shares.
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