AUB Group completes $400m institutional placement to fund Prestige acquisition

The AUB Group Ltd (ASX: AUB) share price is in the spotlight today after the company wrapped up a $400 million institutional placement at $29.40 per share to fund its acquisition of Prestige and support future growth opportunities.

What did AUB Group report?

• Raised $400 million through the placement of approximately 13.6 million shares at $29.40 each
• Placement priced at a 7.9% discount to the last traded price of $31.91
• Strong demand from both existing and new shareholders
• Separate non-underwritten Share Purchase Plan (SPP) targeting up to $40 million for eligible investors
• Funds will support the Prestige acquisition, related costs, and future accretive opportunities

What else do investors need to know?

The new shares issued in the placement fall within AUB’s existing placement capacity and are due to settle on 30 January 2026, with allotment scheduled for 2 February. The $40 million SPP gives eligible Australian and New Zealand shareholders an opportunity to apply for up to $30,000 of new shares, with the offer period open from 4–26 February 2026.

Shares under the SPP will be priced at the lower of the $29.40 placement price or a 2% discount to the five-day volume weighted average price at closing, rounded to the nearest cent. If the SPP is oversubscribed, AUB reserves discretion to scale back applications or raise more.

What did AUB Group management say?

AUB’s CEO Mike Emmett said:

We are pleased with the outcome and thank our shareholders for their strong support for the Placement and the transaction. We are excited for Prestige to join the AUB Group and look forward to accelerating our UK Retail strategy to deliver value for shareholders.

What’s next for AUB Group?

Capital raised will be used to complete the Prestige acquisition and explore additional opportunities for growth. Management aims to leverage the acquisition to strengthen AUB’s UK Retail strategy and deliver enhanced value to shareholders.

AUB will provide further details on the SPP in a dedicated offer booklet, expected on 4 February. Key dates include SPP settlement and trading of new shares in early March 2026, though these timelines remain indicative.

AUB Group share price snapshot

Over the past 12 months, AUB Group shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post AUB Group completes $400m institutional placement to fund Prestige acquisition appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 recommended Aub Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.