Following last week’s capital raise by AMP, the group has opened its share purchase plan to eligible shareholders.
AMP’s share purchase plan will provide all eligible shareholders with the opportunity to subscribe for up to $15,000 worth of shares at a discounted price.
“On behalf of the board, I am pleased to offer you the opportunity to participate in AMP Limited’s Share Purchase Plan,” said AMP chairman David Murray in a letter to shareholders.
The SPP is part of the capital raise announced by AMP last week after the group raised $650 million through a placement of shares to institutional investors at $1.60 a share.
The proceeds from the placement and the SPP will be used to fund the new AMP strategy and provide further balance sheet strength.
“AMP intends to use the proceeds from the institutional placement and SPP to immediately begin implementing its strategy, fund ongoing growth in its core businesses and provide balance sheet strength ahead of the sale of AMP Life,” said Mr Murray.
Eligible shareholders who take up the offer will receive shares at the lower of $1.60 per share or a 2.5 per cent discount on the volume-weighted average price at which AMP trades between 30 August and 5 September.
The SPP opened last week and will close in September with the offer open to resident Australian and New Zealand shareholders.
AMP retains the discretion to cap the amount to be raised including by applying a scale back with all shareholders to have received a further information pack.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
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