The WAM Leaders Ltd (ASX: WLE) share price has just returned to ASX trading after a trading halt lifted on the Listed Investment Company (LIC).
WAM Leaders first announced the halt yesterday pending a capital raising announcement. It stated that its shares will return to the ASX boards "following the announcement of the proposed outcome of the capital raising".
Well, today we got the news that said capital raising had been completed.
The company will raise $277.2 million from the program. This will result in the issuing of 25 million additional shares to the market. It initially allowed existing retail shareholders to apply for new shares on a a pro-rata basis. This consisted of a 1-for-5 entitlement offer at a price of $1.44 a share.
Today, WAM Leaders announced that the offer closed fully subscribed. More than 80% of the funds raised came from WAM Leaders shareholders. The LIC allowed the shortfall to be made up by "eligible professional and sophisticated investors".
WAM raises $277 million in new funds
WAM Leaders tells us that these developments will allow the LIC to grow to having "more than $1.5 billion" in assets under management. As such, this makes the company "one of the largest Listed Investment Companies on the ASX".
Here's some of what WAM founder chair Geoff Wilson had to say on the news:
We greatly appreciate the trust, loyalty and support we have received from WAM Leaders shareholders. More than 80% of the funds in the Entitlement Offer were taken up by existing WAM Leaders shareholders, raising more than $193.6 million…
We are pleased to provide shareholders with a stream of fully franked dividends. In particular those shareholders who have committed additional capital to the Company through the Entitlement Offer.
In the latter remarks, Mr Wilson was referring to the offer's attached carrot. This incentive is that the new shares will receive the FY2022 interim dividend of 4 cents per share that the company will pay out later this year.
The company tells us that this dividend will be worth an annualised yield of 5.6% (or 8% grossed-up with full franking) at the entitlement price of $1.44 per share.
Lead portfolio manager Matthew Haupt added this:
The WAM Leaders Investment team is excited and honoured to be entrusted with the additional capital raised from shareholders. We stand ready to capitalise on the many opportunities we have identified.
About the WAM Leaders share price
At the time of writing, the WAM Leaders share price has successfully returned to trading. It is down 2% so far this afternoon to $1.50 a share. This LIC is one of the growing stable of WAM Listed Investment Companies that the venerated investor now runs.
In this LIC's case, it concentrates on the larger companies in the ASX 200. Management attempts to identify "large-cap companies with compelling fundamentals, a robust macroeconomic thematic and a catalyst". Since its inception in May 2016, WAM Leaders has returned an average performance of 14.9% per annum (not including fees and taxes).
