The Commonwealth Bank has announced a $5 billion equity raising to meet stricter capital rules.
About 71 million new fully paid ordinary shares, 4.3% of the company, will be issued.
Shareholders can buy 1 new share for every 23 shares at $71.50 each. This represents a 10.5%
discount to the dividend adjusted closing price on the ASX yesterday.
The bank’s shares are in a trading halt pending the capital raising.
The Commonwealth is the last of the four big banks to reveal its capital plans to meet APRA’s new rules and is expected to raise $5 billion or more.
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.