The WAM Income Maximiser Ltd (ASX: WMX) share price is in focus following the company's announcement of a 2-for-5 pro-rata non-renounceable entitlement offer at $1.62 per new share, a 5.5% discount to the current share price. The offer aims to raise up to $125.4 million and offers a 7.1% annualised fully franked dividend yield, including franking credits.
Image source: Getty Images
What did WAM Income Maximiser report?
- 2 for 5 pro-rata non-renounceable entitlement offer at $1.62 per share – a 5.5% discount to the last close
- Target raise of up to $125.4 million (77.4 million new shares)
- Annualised December 2026 fully franked dividend yield: 7.1% including franking credits
- Investment portfolio performance: up 19.2% for the year to 30 June 2026, outperforming the benchmark by 13.4%
- Monthly fully franked dividends for September to December 2026 (0.65 to 0.68 cents per share each month)
- Placement to raise an additional $47 million, subject to strong wholesale investor demand
What else do investors need to know?
The entitlement offer is open to eligible shareholders with an address in Australia or New Zealand on the record date of Monday 3 August 2026. Existing shareholders can take up 2 new shares for every 5 held, with the option to apply for more through a Top-Up Facility if there is a shortfall.
Any shortfall will be offered to professional and sophisticated investors, with the same price and conditions as the entitlement offer. Funds raised will be invested in line with WAM Income Maximiser's approach of seeking capital growth and delivering monthly fully franked dividends by holding high-quality Australian equities and corporate debt instruments.
The offer enables shareholders to increase their holding at a discount and without brokerage, with all new shares ranking equally from their date of issue. The increased capital is expected to improve liquidity, reduce the company's fixed expense ratio, and encourage further research and planner interest.
What's next for WAM Income Maximiser?
The company expects to issue new shares on Friday, 28 August 2026, with the entitlement offer closing on Friday, 21 August 2026. The proceeds will be invested according to WAM's disciplined process, focusing on high-quality companies and debt instruments.
Management remains optimistic about finding opportunities in both shares and credit markets, aiming to continue delivering capital growth and reliable income. With the new capital, WAM Income Maximiser aims to increase its relevance and market access, benefit existing shareholders through improved scale, and meet its income return target.
WAM Income Maximiser share price snapshot
Over the past 12 months, WAM Income Maximiser shares have risen 5%, slightly outpacing the All Ordinaries Index (ASX: XAO), which has risen 3% over the same period.
