The embattled wealth giant has managed to raise $784 million after the successful completion of its share purchase plan.
AMP raised $650 million through an institutional placement last month and this week announced that $134.1 million has been raised under the SPP, taking the total amount raised to $784.1 million.
The group announced this week that 83.8 million new shares will be issued to eligible applicants on Friday, 13 September 2019, at an issue price of $1.60 per new share, the same price paid by institutional investors under the placement.
The SPP offer was sent to 713,273 eligible shareholders, with valid applications received from approximately 15,000 shareholders and an average application worth $10,000.
“We are pleased with the outcome and significant shareholder support for our share purchase plan,” AMP chief executive Francesco De Ferrari said.
“This a clear vote of shareholder confidence in our strategy as we transform AMP into a simpler, higher growth and higher return business focused on client needs.
“With funds received from the SPP and our institutional placement, we can begin investing in our strategy immediately while ensuring we maintain an unquestionably strong balance sheet.”
Mr Ferrari and AMP chief financial officer Gordon Lefevre gave an investor presentation on the capital raising on 8 August following the release of the group’s full-year results.
They estimated that between $1 billion and $1.3 billion will be required to implement its new strategy. Up to $450 million has been allocated for the group’s troubled wealth management business, including a digitally enabled or “robo-advice” solution. Some of these funds will also flow through to AMP Bank and AMP Capital to invest in new technology.
Up to $400 million of the funds have been allocated to “de-risking the business” including reshaping AMP’s advice network via register acquisitions and simplifying its master trust.
The remaining $300 million to $450 million has been allocated to realising cost improvements across wealth management, AMP Bank and AMP Capital.
AMP’s share price has fallen 44 per cent over the last 12 months from $3.23 to $1.8 when the market closed on Tuesday (10 September).