Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Westpac (ASX:WBC) Completes Part 1 Of Capital Raising

Westpac (ASX: WBC) has given an update this morning about its large capital raising.

Westpac Banking Corporation, more commonly known as Westpac, is one of Australia’s ‘Big Four’ banks and a financial services provider headquartered in Sydney. It is one of Australia’s largest lenders to homeowners, investors, individuals (via credit cards and personal loans) and businesses.

Westpac’s Capital Raising

The big ASX bank announced as part of its FY19 result that it would raising $2.5 billion from investors to provide an increased buffer above APRA’s “unquestionably strong” CET1 capital ratio benchmark of 10.5%.

The offer is expected to add approximately 46 to 58 basis points (0.46% to 0.58%) to Westpac’s CET1 capital ratio.

The raising is also designed to create flexibility for changes in capital rules and for potential litigation or regulatory action.

There are two parts to this capital raising, a fully underwritten $2 billion institutional share placement and a non-underwritten share purchase plan (SPP) which Westpac is aiming to raise around $500 million.

The offer price of $25.32 per new share is a 6.5% discount to the adjusted (to not include the dividend) last closing share price of $27.08. It’s a 8.1% to the adjusted five day average share price of $27.56.

This morning Westpac announced that it has successfully completed the $2 billion institutional share placement at the price of $25.32. All new shares were allocated to sophisticated and institutional investors in the placement bookbuild.

The trading halt is expected to be lifted before the market opens today.

Westpac’s new shares from the placement are expected to settle on 7 November 2019 with those new shares to commence trading on 8 November 2019. But they’ll have the ASX code of “WBCNB” because those shares aren’t entitled to the $0.80 per share 2019 final dividend.

Regular investors now have the chance to buy up to $30,000 of new shares in the share purchase plan (SPP) at a price of the lesser of either the placement price ($25.32) or the average share price of the five days up to the end of the SPP offer period, less a 2% discount.

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.