The Macquarie Group Ltd (ASX: MQG) share price is marching higher in morning trade, up 2.38% to $198.62 per share.
Below we look at the S&P/ASX 200 Index (ASX: XJO) financial giant’s update on its share purchase plan.
What did the group announce about its capital raising?
The Macquarie share price is gaining after the company announced its share purchase plan (SPP) closed on Friday, raising $1.3 billion in new capital.
The group had initially targeted some $1.5 billion in capital when it first reported the SPP on 29 October. That came on the same day it released its half-year results, revealing that net profits for the half-year had more than doubled from the prior corresponding half year.
Commenting on the capital raising at the time — which saw the Macquarie share price fall — CEO Shemara Wikramanayake said:
Having deployed $5.5 billion of capital over 2H21 and 1H22, we continue to see a strong pipeline of opportunities… Macquarie remains committed to investing in the growth of our businesses in a disciplined manner.
In this morning’s update, Macquarie reported it had received some 49,000 SPP applications from eligible shareholders. It will accept all of those in full and will issue roughly 6.8 million new shares at $191.28 per share. That’s 1.4% below this morning’s opening price of $194.01 per share.
With the placement now closed, Wikramanayake said:
We are very pleased with the positive response from our shareholders. In addition to the institutional placement, proceeds raised under the SPP will provide additional flexibility to invest in new opportunities where the expected risk-adjusted returns are attractive, while maintaining an appropriate capital surplus.
Macquarie expects to issue the 6.8 million new shares generated from the SPP on Friday, 3 December. Those will commence trading on the ASX the following Monday.
Macquarie share price snapshot
The Macquarie share price has been marching steadily higher in 2021, up 41%. That compares to a year-to-date gain of 9% posted by the ASX 200.
Over the past month Macquarie shares are down 0.5%.