National Australia Bank shares have dropped slightly in response to the lender’s massive $5.5 billion capital raising.
National Australia Bank has completed the institutional component of its $5.5 billion capital raising, with 97 per cent take up rate among eligible shareholders.
NAB shares resumed trading shortly after the market opened on today. They were down 5.4 cents, or 0.18 per cent at $34.64 at 1044 AEST.
The broader market, including the other big four banks, were up around half a percentage point at that time.
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After raising $2.7 billion from institutional shareholders NAB will now move to the second phase, a retail entitlement offer that is expected to raise approximately $2.8 billion.
Eligible retail shareholders will be able to get two new shares for every 25 existing NAB ordinary shares that they currently hold at the offer price of $28.50 by June 1.
NAB shares had been in a trading half since Thursday when the bank announced the capital raising, which will beef up its balance sheet and allow it to push ahead with the demerger and public float of its troubled subsidiary Clydesdale Bank subsidiary in the UK.
UK regulators have told NAB it needs to inject another STG1.7 billion ($A3.25 billion) into Clydesdale, to cover any future potential losses linked to past problems with the lender, before an initial public offering can go ahead.
The $5.5 billion raising is the biggest ever seen in Australia, easily topping the $4.4 billion raised by Rio Tinto in 2009.
