Commonwealth Bank (ASX:CBA) has requested a trading halt today as the company commences it’s retail bookbuild in connection with the retail component of its entitlement offer. This is following the successful completion of the retail component of its pro-rata renounceable entitlement offer.
CBA announced today that it has completed the retail component of it’s pro-rata renounceable entitlement offer, which allowed eligible shareholders to buy new CBA ordinary shares at an offer price of $71.50 per New Share. The company stated that the retail component of the Entitlement Offer, which closed on 8 September, attracted strong support from retail shareholders, raising gross proceeds of approximately $1.5 billion.
The Retail Entitlement Offer achieved 50 per cent participation by eligible retail shareholders and purchasers of entitlements, to raise gross proceeds of approximately $1.5 billion. When combined with the successful institutional entitlement offer in August 2015, CBA has to date raised $3.6 billion.
The Retail Bookbuild will commence today with entitlements of eligible shareholders who did not participate in the retail Entitlement Offer and of ineligible retail shareholders, will be offered for sale through a bookbuild process to institutional investors and other qualifying investors. Any sale proceeds will then be paid to the relevant retail shareholders. CBA has brought forward the Retail Bookbuild by one day after considering market conditions, and will commence today at 10am with sale proceeds paid on approximately 22 September 2015. The company has stated that there is no guarantee that all entitlements will be sold or the price they are sold at.
Settlement date for new shares issued under the Retail Entitlement Offer and the Retail Bookbuild is 17 September 2015 with new shares expected to be issued on 18 September and commenced trading 21 September.
CBA requested that today’s trading halt continue until the earlier of it releasing an announcement of the completion of the retail bookbuild, or until open of trading on 14 September.
Author: Ben Visser
Sep 11, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.