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SYDNEY- Wealth manager AMP has launched a A$500 million ($582.7 million) institutional share placement and retail offering to "strengthen its balance sheet and increase flexibility for business growth".
AMP said it was launching a A$400 million fully underwritten institutional share placement, while another A$100 million would be raised through a retail offering.
Retail shareholders in Australia and New Zealand would be able to subscribe to up to A$5,000 in AMP shares through a share purchase plan, the details of which were still to be finalised.
The purchase plan price would be the lower of the institutional placement price or a 2.5 per cent discount to the average market price (volume weighted average price) during a period to be determined, AMP said.
"As flagged in August, AMP has significant capacity to issue subordinated debt, which would qualify as lower Tier 2 capital, but has deferred that option for the time being," AMP said today.
"AMP is making the placement to enhance its capital position and increase business flexibility through the ongoing market turbulence."
- AAP