WestpacTrust falls short but is happy
WestpacTrust's New Zealand capital raising effort has fallen $150 million short of its target.
Monday, October 11th 1999, 12:00AM
The bank originally said it planned to raise "approximately $800 million" in its New Zealand class share offer, however said last night (Sunday) that it had only raised $650 million.
Chief executive Harry Price says 54.4 million shares will be allocated to 30,000 investors at the offer price of $11.95. Shareholders have already paid the first instalment of $7.20 per share, and the balance is due on December 20, 2000.
Under the partly-paid structure shareholders will receive an enhanced yield of 17.5 per cent on the first payment.
Despite falling short of the target Price describes the capital raising as successful.
"The positive response to the NZ Class Share offer illustrates the strong retail demand in New Zealand for a high quality stock providing NZ domiciled exposure to the Australian banking sector."
He says the offer achieves the bank's goals of better aligning its shareholder base with its source of profits, diversifying its investor base and building its brand.
Volatile markets and competing capital raisings have impacted on WestpacTrust's offer.
"The final offer size was set having regard for market conditions and our desire to show a strong commitment to New Zealand while continuing to act in the best interests of all Westpac Group's shareholders," Price says.
The offer price represents the NZ dollar equivalent of the Australian dollar Westpac ordinary share at the close of the offer.
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