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  • Despite only being announced yesterday, National Australia Bank (NAB) has completed a $3 billion institutional placement
  • The banking giant announced that it would be looking to raise a combined $3.5 billion through an institutional placement and share purchase plan
  • For the placement, approximately 212 million shares were issued to investors at a price of $14.15 each
  • In regards to the share purchase plan, eligible shareholders will be able to purchase up to $30,000 worth of shares
  • After coming out of a trading halt NAB shares have dropped 2.35 per cent and are trading for $15.39 each

Despite only being announced yesterday, National Australia Bank (NAB) has completed a $3 billion institutional placement.

The banking giant announced on Monday that it would be looking to raise $3.5 billion through an institutional placement and share purchase plan.

NAB said it had already received significant placement interest from homegrown and overseas investors.

Approximately 212 million shares were issued at a price of $14.15 each. These are expected to settle on April 30 and be allocated on May 1, when they can then begin trading on the ASX the same day.

However, while they rank equally with existing NAB shares, stock issued in the placement won’t be entitled to the 2020 interim dividend.

Share purchase plan

Eligible shareholders will also be able to purchase up to $30,000 worth of new NAB shares in a share purchase plan (SPP).

Those participating in the plan will not incur any brokerage, commissions or transaction costs as NAB aims to raise roughly half a million dollars.

Like the placement shares, the new SPP stock will not be eligible for the interim dividend, as they’ll be issued after the final dividend record date. The SPP is set to close on Friday, May 22.

NAB announced yesterday that would slash its interim dividend to 30 cents as its first-half cash earnings fell 51.4 per cent to $1.46 billion.

The company credits this to the uncertainty surrounding COVID-19.

NAB also saw a 51.3 per cent drop in its net profit to $1.31 billion.

After coming out of a trading halt, NAB shares have dropped 2.35 per cent and are trading for $15.39 each at 12:23 pm AEST.

NAB by the numbers
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