AMP in $500 million capital raising
AMP has launched a fully underwritten institutional placement of shares to raise $400 million to “enhance its capital position” as result of market volatility.
In addition, AMP is seeking to raise a maximum of $100 million by offering Australian and New Zealand retail shareholders an opportunity to subscribe for up to $5,000 of AMP shares through a share purchase plan.
The SPP price will 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.
The group’s statement to the Australian Securities Exchange said the fund manager is making the placement to “enhance its capital position and increase business flexibility through the ongoing market turbulence”.
The initiatives were announced in tandem with the release of third-quarter results that show the company “performed strongly” in the period, according to chief executive Craig Dunn.
“We are continuing to take a disciplined responsive approach to capital management, while managing the business prudently through the current market turmoil,” he said.
Average assets under management (AUM) in the wealth management business reached $51.3 billion, compared to $53.6 billion in the first half of the year, reflecting the continued investment market downturn, he said.
Total net cashflows were $414 million in the quarter, compared to total net cashflows of $760 million in the first six months of the year.
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