- IOOF (IFL) has received commitments to raise $734 million via an institutional placement and retail entitlement offer
- The majority of the funds raised will go towards IOOF’s recently announced acquisition of competitor MLC Australia
- The total cost of the transaction is over $1.4 billion and once completed, it will make IOOF the largest wealth manager in Australia
- The new shares offered under the placement and entitlement offer were priced at $3.50 each
- IOOF has also announced its putting together a share purchase plan (SPP) for existing shareholders, with shares to be offered at the same price
- IFL shares are currently trading for $3.60 each, down 15.3 per cent
Wealth manager IOOF (IFL) has received commitments to raise $734 million via an institutional placement and retail entitlement offer to shareholders and investors.
The majority of the funds brought in from the capital raise will go towards IOOF’s recently announced acquisition of its competitor, MLC Australia.
Under the deal, IOOF will pay MLC’s parent company NAB a total of $1.44 billion to acquire the division.
Once completed, it will make IOOF the largest wealth manager in Australia.
The company said its recently announced retail entitlement offer had already attracted strong support, with over 92 per cent of eligible institutional shareholders taking part.
Under the deal, those subscribing will receive one new share for every 2.09 already held, at a discounted price of $3.50 per share.
IOOF expects to walk away with $282 million, with the offer to open on September 7, and close on September 16.
Placement & SPP
Along with the entitlement offer, IOOF said it also received strong support for its institutional placement, successfully raising $452 million.
Under the placement, a total of 129,163,896 new shares will be issued to new and existing investors, at the same price of $3.50 per share.
Finally, IOOF has also announced it will offer a share purchase plan (SPP) to existing eligible shareholders – with shares again to be offered at $3.50 each.
Shareholders are invited to subscribe for up to $30,000 worth of shares, with an offer booklet to be sent out on September 7.
The results from the SPP, and the final amount raised via the entitlement offer, will be released on September 18.
Following today’s capital raise announcement, shares in IFL are trading down 15.3 per cent at the close of trading, worth $3.60 each.