The Bank of Queensland Limited (ASX: BOQ) share price has returned from its trading halt with a bang.
This afternoon the regional bank's shares have raced 10% higher to a 52-week high of $9.25.
When the Bank of Queensland share price hit that level, it meant they were up a remarkable 57% in the space of six months.
Why is the Bank of Queensland share price racing higher?
Investors have been buying the bank's shares today after it announced the successful completion of the institutional component of its capital raising.
According to the release, the bank raised a total of $673 million from institutional investors via an underwritten 1 for 3.34 accelerated pro rata non‐renounceable entitlement offer and placement.
These funds were raised at $7.35 per new share. This represents a discount of 12.6% to the Bank of Queensland share price at the close of play on Thursday last week.
Management advised that the institutional entitlement offer was strongly supported with a take‐up rate of ~98%. The placement also received significant demand.
Bank of Queensland will now push ahead with the retail component of its $1.35 billion capital raising.
Why is Bank of Queensland raising funds?
The proceeds from the capital raising with be used to complete the transformative acquisition of ME Bank.
Bank of Queensland's Managing Director and CEO, George Frazis, commented: "We are very pleased with the strong support we have received from our institutional shareholders and other investors as we take this unique opportunity to create a leading customer‐centric alternative to the big banks."
"We believe that this transformational merger creates a compelling proposition with significant scale benefits through the alignment of operating models and our technology roadmaps."
"We are pleased that investors recognise the compelling strategic and financial proposition of this transaction and we are excited to work hard to deliver better outcomes for our customers, employees, the community and our shareholders," he concluded.
Is the Bank of Queensland share price good value?
Despite hitting a 52-week high today, a couple of brokers still believe the Bank of Queensland share price can go higher.
Analysts at Goldman Sachs have a buy rating and $9.63 price target on its shares. Whereas analysts at Credit Suisse have an outperform rating and $9.50 price target.
