Participants in ANZ’s $500 million share purchase plan (SPP) are likely to receive a big discount on the price paid by institutional investors for the $2.5 billion placement in early August.
Speaking to InvestorDaily, ANZ head of capital and structured funding John Needham said retail investors participating in the plan are set to get a much better deal than institutional investors.
Institutional investors that took part in the $2.5 billion placement on 6 August 2015 paid $30.95 per share for approximately 80.8 million ANZ ordinary shares.
The SPP offer opened on Monday 24 August and is scheduled to close tomorrow at 5pm.
The price per share of the SPP is the lower of the institutional placement ($30.95) and the volume-weighted average of the five trading days up to and including Tuesday 8 September 2015 – less a 2 per cent discount.
Mr Needham said the prices of the first two days of the five-day period (Wednesday and Thursday) were $27.1257 and $27.2944, respectively.
"Effectively investors are getting the shares at a 2 per cent discount to the current price over these five days," he said.
"That would seem to indicate that it’s going to be quite a bit less than the price paid by the institutions in that institutional placement."
He added that there was, however, still some room for movement.
"You tend to see quite a lot of subscriptions come in for transactions on the last two days," Mr Needham said.
Asked whether ANZ is on track to fulfill the $500 million raising, he said "it is all going to plan".
"We think of it as a $500 million raising and we don’t want to change that view," he said.
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