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Investment opportunities Capital Raisings

Investing in IPOs

Companies may choose to raise capital through the issue of new shares or debt.  To raise capital, companies can access a large pool of investors and obtain funding for activities including expansion of business operations, acquisitions or to improve balance sheet strength.

If a company is looking to raise equity capital they may consider an Initial Public Offering (IPO). An IPO is undertaken when a company raises capital prior to listing on the Australian Securities Exchange (ASX).

 

Three ways to invest in IPOs with nabtrade

Broker allocation

Through the broker allocation process clients express their interest for a particular offer. This is followed by a formal application when an offer is opened, however priority is given to clients who expressed interest. Clients who are successful are then given an allocation and can trade the new securities once they list on the ASX.

ASX BookBuild

ASX BookBuild is a tool that gives you access to capital raisings using the existing ASX systems and infrastructure to facilitate client bids. There is no expression of interest process - clients bid directly to the Lead Manager via nabtrade. All allocations are managed by the Lead Manager.

Reinvestment offers

Reinvestment offers, which form part of a Broker allocation, give eligible security holders the option to reinvest. This is a market first in online broking.

Current offers

eInvest Income Generator Fund

Applications now closed

Issue price: $4.00

Minimum investment: $5,000

Gryphon Capital Income Trust

Applications now closed

Issue price: $2.00

Minimum investment: $5,000

L1 Long Short Fund

Applications now closed

Issue price: $2.00

Minimum investment: $5,000

Past offers

Details of previous offers available to nabtrade clients can be found below, including an investment snapshot and indication of price change since issue.

CommBank PERLS X Capital Notes

CBAPG:ASX Issue price: $100

Offer size: $1.25 billion

CommBank PERLS X Capital Notes, also referred to as PERLS X, are perpetual, subordinated, unsecured notes, issued by CBA.

Westpac Capital Notes 5

WBCPH.ASX Issue price: $100

Offer size: $1.69 billion

Westpac Capital Notes 5 are fully paid, non-cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Westpac.

Montgomery Global Equities Fund

MOGL:ASX Issue price: $3.34

Offer size: $54.9 million

The Fund aims to provide investors with long term capital growth as well as income distributions of at least 4.5% p.a. through a portfolio of quality global shares and to outperform the MSCI World Net Total Return Index, in Australian Dollars over a rolling 5-year period, net of fees.

Bank of Queensland Capital Notes

BOQPE:ASX Issue price: $100

Offer size: $350 million

Capital Notes are fully paid, unsecured, non-cumulative, perpetual, convertible notes which will pay, subject to the issue terms and BOQ’s discretion, preferred floating rate quarterly distributions which are expected to be fully franked. Capital Notes will qualify as Additional Tier 1 Capital of BOQ under APRA’s Prudential Capital Requirements.