ANZ share price edges lower after capital raising

A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today

A man in suit and tie is smug about his suitcase bursting with cash. representing the large amount of cash that Bigtincan reported in its quarterly update which has made the Bigtincan share price rise today

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has returned from its three-day trading halt.

In early trade, the banking giant’s shares are down almost 1% to $21.46.

Why is the ANZ share price falling?

The catalyst for the weakness in the ANZ share price on Thursday has been the completion of the institutional component of the banking giant’s capital raising.

According to the release, ANZ has successfully raised gross proceeds of approximately $1.7 billion, which will result in the issue of approximately 89 million new shares.

The release notes that the institutional entitlement offer was well supported by ANZ’s institutional shareholders with approximately 95% of entitlements taken up.

The remaining entitlements were quickly snapped up by other eager institutional shareholders who paid $21.65 per new share following a shortfall bookbuild process. This is $2.75 higher than the offer price of $18.90 per share.

ANZ will now push ahead with its retail entitlement offer which is aiming to raise the balance of the $3.5 billion capital raising at the same price.

Why is ANZ raising funds?

The proceeds from the capital raising will be used to fund the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) for $4.9 billion.

ANZ’s chief executive officer, Shayne Elliott, explained the rationale of the acquisition. He said:

The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland. With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business. This will result in a stronger more balanced bank for customers and shareholders.

This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders.

The post ANZ share price edges lower after capital raising appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/r3KwSNI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s