The AMP Limited (ASX: AMP) share price is trading higher today after news of the company's successful $650 million capital raise was released to the ASX this morning before market open. AMP shares had been in a trading halt prior to both this information being released and its release of first half profits yesterday.
In some good news for AMP's long-suffering shareholders, the company announced the "successful completion of the institutional placement announced to the market on Thursday, 8 August 2019 to raise A$650 million."
Here's some of what AMP released this morning:
Approximately 406.3 million new fully paid ordinary shares in AMP ("New Shares") will be issued to new and existing institutional investors.
The Placement was priced at A$1.60 per New Share, representing a 6.7% premium to the underwritten floor price of A$1.50 per New Share.
The A$1.60 price represents a:
− 7.5% discount to the last close price on ASX of A$1.73 on Wednesday, 7 August 2019; and
− 10.1% discount to the 5-day VWAP on ASX of A$1.78 to the close of trade on Wednesday, 7 August 2019.
AMP's Chief Executive Francesco De Ferrari said: "We are pleased with the strong support we have received from investors. The funds raised will allow us to immediately implement our transformational strategy to create a simpler, higher-growth and higher-return AMP that's focused on customers.
The company also stated that: "settlement of the New Shares under the Placement is expected to occur on Tuesday, 13 August 2019, with allotment and trading expected to occur on Wednesday, 14 August 2019. The New Shares issued under the Placement will rank equally with existing shares on issue."
AMP also reiterated its plans to undertake a share purchase plan (SPP) and flagged that a "booklet with further details on the SPP is expected to be despatched to eligible shareholders on Friday, 16 August 2019."
AMP shares opened trade this morning at $1.73 but have now bounced higher and are going for $1.87 at the time of writing, a bump of 8.21% on yesterday's close.
