AMP has raised $450 million through a fully underwritten institutional placement of 85 million shares, at $5.30 each.
It is making the placement to strengthen its capital position, by bringing in capital ahead of the maturation of its $267 million of subordinated debt in 2009, a spokesperson said.
Initially AMP sought to collect $400 million, but raised the placement by $50 million in response to strong support from investors.
The placement was at a discount to the current market price. Shares opened Wednesday at $5.88, a 1.7 per cent decline on the closing price of $5.98 on Tuesday, and closed at $5.89.
Trading was briefly halted yesterday awaiting the announcement of the increased placement.
AMP plans to raise an additional $100 million through a share purchase plan, whereby existing retail shareholders can purchase up to $5000 worth of shares, at a 2.5 per cent discount to the average market price.
The company said its capital position was sound, and it currently holds $740 million above the minimum regulatory required capital.
AMP also said the group's debt had increased by $189 million over the third quarter, but that this had no material influence on the gearing ratio. As at June 30, the gearing ratio stood at 13 per cent.
The company remains confident in the wealth management industry for the medium to long-term, although it expected volatile market conditions in the short-term.
"Our strategy is to prudently manage through these market conditions, while also continuing to invest where we see growth opportunities," AMP chief executive Craig Dunn said.
