Bank of Queensland (ASX:BOQ) - Managing Director & CEO, George Frazis
Managing Director & CEO, George Frazis
Source: Queensland Times
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  • Bank of Queensland (BOQ) has completed the institutional component of its $1.35 billion capital raising
  • Of the roughly $673 million raised in the institutional component, $323 million was generated by an institutional entitlement offer at $7.35 per share
  • A placement raised the remaining $350 million at the same price, with 48 million new shares to be issued
  • The proceeds from the capital raising will be used to fund the acquisition of Members Equity Bank Limited for $1.32 billion
  • The shares are expected to settle on Tuesday, February 23 and enter trading the following day
  • Band of Queensland is up 13.3 per cent, trading at $9.25 each

Bank of Queensland (BOQ) has completed the institutional component of its $1.35 billion capital raising.

The component covers a one-for-3.34 accelerated pro rata non‐renounceable entitlement offer and an underwritten institutional placement.

Of the roughly $673 million raised, the institutional entitlement offer generated approximately $323 million at $7.35 per share. This was strongly supported by institutional shareholders with a take‐up of almost 98 per cent.
 
The placement raised the remaining $350 million at the same price, with roughly 48 million new shares to be issued.

The proceeds from the capital raising will fund the acquisition of Members Equity Bank Limited for $1.32 billion.

“We are very pleased with the strong support we have received from our institutional shareholders and other investors as we take this unique opportunity to create a leading customer‐centric alternative to the big banks,” said BOQ’s Managing Director and CEO, George Frazis.

“We believe that this transformational merger creates a compelling proposition with significant scale benefits through the alignment of operating models and our technology roadmaps.”

The new shares will rank equally with existing BOQ shares in all respects from the date of issue and are expected to settle on Tuesday, entering ordinary trading the following day.

The retail component of the entitlement offer, which is also underwritten, is expected to raise approximately $680 million. This take BOQ’s total equity raising to approximately $1.35 billion.

Band of Queensland is up 13.3 per cent, trading at $9.25 each at 3:05 pm AEDT.

BOQ by the numbers
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