NAB's share price drops after raising $2.7 billion

Vince

National Australia Bank shares fell when they returned to the ASX again after raising $2.7 billion from institutional investors.

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

Regulators want NAB to beef up the cash reserves of Clydesdale before a float can go ahead.

There was a 97% take up by institutional investors for the share offering. The bank now goes to retail investors from tomorrow.

Retail shareholders will be able to buy two shares for every 25 existing NAB ordinary shares at $28.50 each.

NAB shares are down 1.93% to $34.52 after returning to the ASX from a trading halt. The other big banks are all stronger, led by Westpac, up 1.1% to $34.07.

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