This ASX All Ords share is surging 5% after securing $150 million

ANZ ASX 200 banks capital return Group of investors madly grabbing for cash on city street.ANZ ASX 200 banks capital return Group of investors madly grabbing for cash on city street.

Shares in All Ordinaries Index (ASX: XAO) company AUB Group Ltd (ASX: AUB) are back on the move once more.

Stock in the insurance broker exited a single-session trading halt this morning on news the company successfully raked in $150 million.

Right now, the AUB share price is $27.67, 7% higher than it was at Wednesday’s close.

Let’s take a closer look at all that’s been going down with the All Ords share this week.

ASX All Ords share soars on oversubscribed placement

The AUB share price is roaring ahead of the All Ords on Friday after the company’s $150 million placement received strong support from institutional shareholders.

Investors had the opportunity to snap up a portion of 6.25 million new shares offered for $24 apiece. That represented a 7.2% discount on the stock’s Wednesday close.

Proceeds from the capital raise will replace $100 million of cash in flow previously expected to come from a joint venture between AUM’s Tysers UK Retail business and PSC Insurance Group Ltd (ASX: PSI). The proposed venture was binned earlier this week.

AUB CEO Mike Emmett commented that the company was “very pleased” with the outcome of the oversubscribed placement, saying “it is a testament to the strong performance of both AUB and the Tysers business”. Emmett continued:

We continue to focus on delivering our strategy by combining strong organic performance with executing accretive M&A. This raising provides us the financial flexibility required to capitalise on our attractive M&A pipeline, so we thank our investors for their continued support.

And retail investors need not fret. They’ll get their chance to join in on the capital raise under a share purchase plan (SPP).

The plan is expected to raise $15 million. It will allow shareholders to secure up to $30,000 of new securities in the All Ords company for $24 apiece.

An offer booklet for the SPP is expected to be released to the ASX in around a week’s time.

AUB share price snapshot

Today’s gain is just the latest to boost the AUM share price higher.

The ASX All Ords share has been outperforming the benchmark index lately. It’s gained 23% since the start of 2023 and 43% since this time last year.

Meanwhile, the All Ords has risen 5% year to date and 2% over the last 12 months.

The post This ASX All Ords share is surging 5% after securing $150 million appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PSC Insurance Group. The Motley Fool Australia has recommended Aub Group and PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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