The NAB (ASX:NAB) share price was trading 5.16% higher today following news of the successful completion of its institutional capital raising.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 5371.6, up 1.1%.
About NAB
NAB is one of the four largest banks in Australia in terms of market capitalisation, earnings and customers. However, in 2019, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending. It also operates the online-only Ubank.
NAB’s $3 billion raise
NAB has been creating a stir in the media recently with the news of its $3.5 billion capital raising. The plan was for a $3 billion fully underwritten institutional raising, and a non-underwritten share purchase plan (SPP) targeting another $500 million.
NAB announced today that it has completed the institutional portion of its raise. It will now issue approximately 212 million new fully paid ordinary shares to both domestic and offshore institutional investors. These shares came at a price of $14.15 each.
“The Placement Shares will rank equally with existing NAB ordinary shares, but will not be entitled to the 2020 interim dividend,” NAB explained.
The placement shares are expected to settle on Thursday 30 April 2020, and be issued and commence trading on ASX on Friday 1 May 2020.
This development follows news Rask Media covered earlier this week in our story, “HY20 result and capital raising, time to buy NAB shares?”
What now?
On this news NAB shares were last seen trading at $16.11, giving the company a market capitalisation more than $25 billion.
The question is, does this make NAB shares a buy? I think I’d prefer to buy shares in companies capable of faster growth, such as those in the report that’s available below.
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