It’s now up to the Bank of Queensland board and management to make its biggest deal in its history work after the retail component of the funding for the $1.35 billion plus purchase of ME Bank was completed.
Bank of Queensland said on Monday that the retail offer raised about $682 million at the offer price of $7.35 a new share, with OK support from eligible retail shareholders.
The offer saw around 50% of eligible retail shareholders contributing to the raising.
On Monday Bank of Queensland said applications from existing eligible retail shareholders totalled $336 million – or approximately 45 million new shares – reflecting the 50% take-up rate.
In addition, another $72 million or approximately 10 million new shares were applied for under the oversubscription facility.
BOQ said 37 million new shares not taken up under the retail entitlement offer will be allocated to the underwriters or sub-underwriters.
BOQ last month raised $673 million from institutional investors to start the funding of the ME Bank purchase.
Management and the board will have to be careful on integration and cost cuts to make sure they do not damage the brands of both banks and don’t allow themselves to be distracted in the current home-lending boom
BOQ fell 1.9% to $8.72.
