POPULAR DEMAND PROMPTS BULLISH BANK TO ESCALATE EQUITY OFFER
Written on the 20 November 2012
ASX-LISTED Bank of Queensland (BOQ) has confirmed it will increase its latest equity offer by 25 per cent to $250 million.
The move was in response to strong investor support for the original $200 million convertible preference share offer, which was announced earlier this month.
BOQ chief financial officer Anthony Rose (pictured) is pleased with the positive response from shareholders and believes it confirms the strength of the bank’s balance sheet and market capital ratios.
”We have seen very strong new investor demand and strong premium equity participating security (PEPS) rollover in the retail broker firm book-build, with the transaction more than two times oversubscribed already,” he says.
The transaction size can be further increased due to a reinvestment offer for PEPS holders, who were already registered on November 9 and did not participate through the book-build.
“BOQ values this investor base and it was important to provide PEPS holders with an opportunity to switch into a new instrument on current market terms,” says Rose.
The reinvestment, shareholder and general offers are expected to close on December 13.
BOQ shares were flat this week at $6.80 per unit.