The Suncorp Group Ltd (ASX: SUN) share price is in the green today after the company successfully completed a $405 million capital raise.
The capital raise was increased from $375 million following strong demand. It saw Suncorp providing capital notes 4 for $100 apiece.
At the time of writing, the Suncorp share price is $12.41, 1.97% higher than its previous close.
Let’s take a closer look at today’s news from banking, insurance, and investment institution.
Suncorp’s successful capital raise
The Suncorp share price is in the green today after it bumped up its capital notes offering by $30 million.
The capital notes 4 first distribution will be at a rate of around 2.9% and will be paid on 17 December 2021. From then on, the notes will come with a distribution rate of around 2.04% per annum. Suncorp plans to hand out fully franked distributions.
5,251 investors participated in the offer, with four investors putting in more than $10 million each.
The positive news comes at a great time for the Suncorp share price. It fell 2.25% yesterday alongside shares in other ASX-listed insurance providers.
The dip came after a 5.9 magnitude earthquake hit Mansfield at around 9.15am yesterday, causing damage to parts of Melbourne and Victoria.
Victorian Deputy Premier James Merlino later advised that the state was aware of 46 reports of damage to properties.
However, Australasia’s insurance industry publication, insuranceNEWS.com.au, reported that Insurance Australia Group Ltd (ASX: IAG) had received more than 100 claims yesterday, with Allianz Australia reportedly racking up 70 claims.
Suncorp share price snapshot
Today’s gains have added to the Suncorp share price’s recent strong performance on the ASX.
It is currently 26% higher than it was at the start of this year. It has also gained 45% since this time last year.
The post Here’s why the Suncorp (ASX:SUN) share price is lifting today 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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. 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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