NAB commences $2.8bn retail bookbuild

NAB commences $2.8bn retail bookbuild

NAB will look to raise $2.8 billion via a retail entitlements offer that begins today following the successful completion of a $2.7 billion institutional bookbuild on Monday.


NAB announced the completion of the institutional component of its fully underwritten 2-for-25 pro rata accelerated renounceable entitlement offer of new ordinary shares on Monday.

The institutional entitlement offer raised approximately $2.7 billion, according to NAB Group finance and strategy executive Craig Drummond.

"We now look forward to completing the retail component of the offer, which opens on Wednesday, 13 May 2015," Mr Drummond said.

"A strong balance sheet remains a priority at NAB, which is why we are raising $5.5 billion of capital through this entitlement offer.

"We expect the raising to put NAB in a strong capital position following anticipated regulatory change and the proposed separation of our UK banks," Mr Drummond said.

The institutional bookbuild had a clearing price of $33.80 per new share (being the offer price of $28.50 per share, plus $5.30 per entitlement).

"Accordingly, eligible institutional shareholders who elected not to take up their entitlements, and ineligible institutional shareholders, will receive $5.30 in cash for each entitlement sold for their benefit in the institutional shortfall bookbuild, less expenses and any applicable withholding tax," NAB said in a statement to the ASX.

The retail component of the entitlement offer, together with the retail shortfall bookbuild, is expected to raise approximately $2.8 billion.

It opens today and closes at 5pm on Monday 1 June 2015. Eligible retail shareholders will be able to subscribe for two new shares for every 25 existing NAB ordinary shares held on the record date of Tuesday, 12 May 2015, 7pm.

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