ASX 200 rises, Zip sinks, BOQ reports

The S&P/ASX 200 Index (ASX:XJO) went up 0.5% today. The Zip Co Ltd (ASX:Z1P) share price sank after coming to trade from its note offering.

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The S&P/ASX 200 Index (ASX: XJO) went up 0.5% today to 7,059 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

Zip said that it had successfully priced its $400 million zero coupon senior unsecured convertible notes due 2028. The notes will mature on 23 April 2028 unless otherwise redeemed, repurchase or converted in accordance with their terms and conditions.

The conversion price of the notes is $12.39 per share, which represents a conversion premium of 35% over the reference share price.

Zip said that the buy now, pay later company will use the proceedings of the offering will be used for driving growth in core markets, expanding into new regions and for general corporate purposes.

The co-founder and chief operating officer Peter Gray said:

We are very pleased with the strong global demand for this offering. This transaction further diversifies Zip’s sources of capital and allows us to pursue our global growth aspirations while reducing potential dilution of existing shareholders.

Bank of Queensland Limited (ASX: BOQ)

The BOQ share price dropped around 0.7% today after the regional bank released its FY21 half-year result.

BOQ revealed cash earnings after tax increase of 9% to $165 million. However, cash earnings per share (EPS) only grew by 3% to 34.3 cents. Statutory profit grew by 66% to $154 million.

Management explained that the growth was driven by above system growth, a net interest margin (NIM) improvement, cost discipline and a strong capital position.

The ASX 200 share’s common equity tier 1 (CET1) capital ratio increased by 12 basis pointed to 10.3%. BOQ’s half-year dividend was increased by 11 cents per share to 17 cents per share.

Regarding the ME Bank acquisition, BOQ CEO and managing director George Frazis said:

The acquisition of ME Bank announced in February 2021 is on schedule, with integration planning well progressed and the regulatory approvals process underway. We anticipate the acquisition to be completed by the end of the our financial year. The acquisition is expected to be cash EPS accretive, including full run-rate synergies in the first year. The acquisition of ME Bank is a meaningful step in making BOQ Group a compelling alternative to the big banks. We are confident that our multi-brand, niche segment strategy will give us a competitive advantage and provide genuine choice to millions of Australians.

Transurban Group (ASX: TCL)

The Transurban share price finished flat today after giving its quarterly traffic numbers to the market.

During the three-month period to 31 March 2021, average daily traffic (ADT) increased by 1.1% compared to 2020 and decreased by 3.8% compared to 2019.

Traffic impacts across each of Transurban’s markets continue to vary.

Sydney ADT increased by 21.8% to 936,000. A large majority of this increase was down to traffic at the new assets of NorthConnex, M5 East and M8. Without those, traffic would have increased by 4.5%.

Melbourne ADT decreased by 15.2% to 675,000 transactions due to restrictions, according to Transurban.

Brisbane ADT went up by 3.3% to 403,000 trips despite brief lockdowns during the period.

North American ADT decreased by 26.9% to 101,000 trips.

Boral Limited (ASX: BLD)

The Boral share price ended slightly higher after announcing some potential divestment news.

The ASX 200 share said that as part of the review of its North American fly ash business.

The Boral CEO and managing director said:

We have conducted a detailed study of the US fly ash industry and remain confident in the long term demand dynamics for the industry, including significant incremental demand growth potential from the US government’s proposed new infrastructure program.

New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fresh fly ash supply as the US transitions away from coal fired power generation. As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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