NAB completes Australia's biggest corporate capital raising of $5.5 billion so it can float off its UK business

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The NAB has completed a $5.5 billion capital raising, the biggest in Australian company history, so it can float off its troubled UK subsidiary Clydesdale Bank.

The bank told the market today that it sold 28.5 million shares overnight after yesterday saying retail investors had taken up 72% of the shares on offer, raising $2.04 billion.

The retail shortfall bookbuild saw the remaining shares sold. The previous institutional raising was well subscribed.

Retail shareholders were able to buy two shares for every 25 existing NAB ordinary shares at $28.50 each. NAB is trading at $32.06, down 0.8%, in early trade today.

UK regulators want NAB to beef up the cash reserves of the Clydesdale Bank before a float can go ahead to protect it against potential losses linked to past problems.

The $5.5 billion by the NAB is higher than the $4.4 billion raised by Rio Tinto in 2009, the previous biggest Australian corporate capital raising.

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