Bank of Queensland has already managed to raise $183 million through an entitlement offer to acquire Investec Bank’s sizeable assets.
Last week the bank was the successful bidder on Investec’s $2.4 billion loan book, professional finance and asset finance portfolios.
BoQ will pay $440 million all up and aims to raise $400 million of capital by August.
The first round of the fundraising was through institutional investors. They took up 95% of shares, raising the $183 million. Stock was offered at $10.75, against a midmorning price of $12.66.
With the institutional component of the offer completed, the bank will open the retail offer today, at the same price. It aims to raise $217 million through this method.
In 2012 BoQ posted a $17 million loss – the first Australian bank in 20 years to do so.
It has since had a turnaround with new management, with half-year profits rising 34% to $134.7 million. The bank linked this to better efficiency and falling bad debts.
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