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NAB Completes Retail Shortfall Bookbuild

NAB Completes Retail Shortfall Bookbuild
Jun 05, 2015 By Simon Herrmann

On Friday, National Australia Bank (ASX:NAB) announced the successful completion of its retail shortfall bookbuild. The bookbuild was a fully underwritten 2 for 25 pro rata accelerated renounceable entitlement offer of new ordinary shares of NAB. The offer included entitlements to subscribe for new shares that eligible retail shareholders did not take up and the entitlements of ineligible retail shareholders. The final stage of the raising was announced early last month and was completed on Friday.

NAB said the retail bookbuild was completed on Thursday. Around 28.5m entitlements were sold with a clearing price $3.10 per entitlement. The total amount paid to each recipient was $31.60, which was comprised of the $28.50 offer price plus the $3.10 clearing price for each new share. The shares will be settled on Wednesday, 11 June and commence normal trading the following day. In NAB’s original retail entitlement offer, investors had only taken up 72 per cent of the shares. This forced the banking giant to institute a shortfall bookbuild.

Merrill Lynch, Macquarie Group and Morgan Stanley handled the raising. The first stage of the raising occurred in May, which totalled around $2.70bn. The second stage of the raising saw only 72 per cent of entitlements purchased by investors, totalling around $2.04bn. The final stage of raising was the retail shortfall bookbuild, which totalled $813m, bringing the total raising to $5.55bn. Shares of NAB have fallen 42c, or 1.30 per cent, at $31.90 per share around 1:13pm on Friday. NAB has fallen 2.60 per cent in the last 12 months and 3.67 per cent so far today.

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Simon Herrmann Author: Simon Herrmann Jun 05, 2015

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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