The AUB Group Ltd (ASX: AUB) share price is in the spotlight today after the company wrapped up a $400 million institutional placement at $29.40 per share to fund its acquisition of Prestige and support future growth opportunities.
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What did AUB Group report?
- Raised $400 million through the placement of approximately 13.6 million shares at $29.40 each
- Placement priced at a 7.9% discount to the last traded price of $31.91
- Strong demand from both existing and new shareholders
- Separate non-underwritten Share Purchase Plan (SPP) targeting up to $40 million for eligible investors
- Funds will support the Prestige acquisition, related costs, and future accretive opportunities
What else do investors need to know?
The new shares issued in the placement fall within AUB's existing placement capacity and are due to settle on 30 January 2026, with allotment scheduled for 2 February. The $40 million SPP gives eligible Australian and New Zealand shareholders an opportunity to apply for up to $30,000 of new shares, with the offer period open from 4–26 February 2026.
Shares under the SPP will be priced at the lower of the $29.40 placement price or a 2% discount to the five-day volume weighted average price at closing, rounded to the nearest cent. If the SPP is oversubscribed, AUB reserves discretion to scale back applications or raise more.
What did AUB Group management say?
AUB's CEO Mike Emmett said:
We are pleased with the outcome and thank our shareholders for their strong support for the Placement and the transaction. We are excited for Prestige to join the AUB Group and look forward to accelerating our UK Retail strategy to deliver value for shareholders.
What's next for AUB Group?
Capital raised will be used to complete the Prestige acquisition and explore additional opportunities for growth. Management aims to leverage the acquisition to strengthen AUB's UK Retail strategy and deliver enhanced value to shareholders.
AUB will provide further details on the SPP in a dedicated offer booklet, expected on 4 February. Key dates include SPP settlement and trading of new shares in early March 2026, though these timelines remain indicative.
AUB Group share price snapshot
Over the past 12 months, AUB Group shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
