Commonwealth Bank finishes its $5.1 billion capital raising, shares fall

Commonwealth Bank Australia. Photo: Getty Images

The Commonwealth bank finished its $5.1 billion capital raising to meet stricter capital rules, came out of a trading halt and saw its shares fall.

It was down 1.19% to $74.23 while the other big banks were up, with Westpac 1.48% stronger at $30.95.

The equity raising allowed Commonwealth Bank shareholders to buy 1 new share for every 23 shares at $71.50 each.

Retail investors didn’t take up all their allocations but the bank then offered the remaining 21 million shares to both retail and institutional investors.

The Commonwealth is the last of the four big banks to implement capital plans to meet APRA’s new rules.

Westpac did a $750 million hybrid note issue, the ANZ a $3 billion issue of equity and the NAB has completed a $5.5 billion raising, the biggest in Australian corporate history, to partly back the float of its troubled UK business.

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