The Computershare Ltd (ASX: CPU) share price will return to trade today after nearly a week in a trading halt. This comes after a pre-market update on the group’s entitlement offer this morning.
What’s the latest on the Computershare share price?
Computershare this morning said it has completed the institutional component of its entitlement offer. The Aussie share registry group announced the underwritten 1 for 8.8 pro-rata accelerated renounceable entitlement offer on 24 March 2021.
The institutional entitlement offer raised ~$500 million at an offer price of A$13.55 per new share. Computershare reported a 94% take-up rate from eligible institutional shareholders. That offer price represents a 9.61% discount to the 23 March closing Computershare share price of $14.99.
Computershare is using the proceeds to partially fund its acquisition of Wells Fargo Corporate Trust Services (CTS) for US$750 million (~A$982 million). CTS is is a leading US-based provider of trust and agency services to government and corporate clients.
The now-completed institutional component is just one part of the group’s capital raising. Computershare is seeking to raise ~$335 million from retail investors for a total ~$835 million capital raising. The retail entitlement offer will open on 31 March and close on 19 April 2021.
Computershare will issue the new shares from the institutional raise on Tuesday 6 April. However, the Computershare share price should return to active trade today.
Computershare said its ordinary shares are expected to resume trading from market open today on an “ex-entitlement” basis. Per the release, the trading halt will be lifted and shares will resume trading today.
Foolish takeaway
The Computershare share price is one to watch this morning after an update on the institutional part of its capital raising.
As at last Tuesday’s close, Computershare was trading just shy of its $15.50 per share 52-week high. That has come about after a 54.4% surge in the last 12 months as investment in ASX shares exploded during the coronavirus pandemic.
At its last close, the Aussie registry group had a market capitalisation of $8.1 billion and a 3.1% dividend yield.
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Motley Fool contributor Ken Hall 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 Bruce Jackson.
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