Australian funding conglomerate Macquarie Group said on Wednesday it might raise about A$1 billion ($675.4 million) through a private share placement for funding in the renewable energy, technology, and infrastructure divisions.
The bank is providing the shares to investors at a value of A$118 to A$123.5 each and has already acquired enough demand to cowl the book, two sources familiar with the deal said.
The share placement isn’t underwritten, indicating the bank’s expectation of strong demand. The book-build course closes late on Wednesday, the sources said, refusing to be recognized because the information isn’t public.
The placement will likely be followed by a share buy plan for existing shareholders, the Sydney-based funding bank stated.
She added the money raised “must be sufficient” to address a strong pipeline of investment alternatives across the firm.
The raising follows recent sturdy capital funding and the anticipated deployment of more cash, in addition to the requirement of an extra A$600 million in the capital at its trading division because of its derivative exposure, the bank stated.
At its annual investor meeting, Macquarie mentioned it had about A$5 billion of excess capital after it reported record earnings pushed by asset sales and double-digit gains from its trading and purchases units.
Goldman Sachs analysts expected the share plan would receive an additional A$300 million to A$600 million.
Macquarie further said Wednesday it anticipated a 10% rise in first-half profit, broadly according to its previous forecasts.
Wikramanayake, who took over the highest position at Macquarie in late 2018, previously informed analysts that favorable conditions had been unlikely to be repeated in full-year 2020, without explaining.