WAM Active Limited (ASX:WAA) has successfully closed its 2-for-3 pro-rata non-renounceable entitlement offer alongside a shortfall offer and institutional placement, raising a combined AU$70.7 million. The entitlement offer attracted AU$20.5 million from 997 shareholders, while the Top-Up Facility contributed an additional AU$5.4 million from 315 participants.
The strong uptake from existing investors underscores continued confidence in the company’s active investment strategy and track record. Every qualifying shareholder who applied under the entitlement offer and the Top-Up Facility will be allotted the complete number of shares they requested.
Following the entitlement offer, the shortfall component and placement raised AU$44.8 million, reflecting significant interest from professional and sophisticated investors. Due to the strength of demand, the company proceeded with an additional institutional placement of approximately AU$19.3 million to accommodate further participation.
The new shares issued through the placement were offered at the same price as those under the entitlement offer and will carry identical rights to existing shares from the time they are allotted. The share issuance was completed using the company’s existing authority to issue equity under the ASX Listing Rules.
Expanded Capital Base Enhances Market Position
The capital raising results in an 84 per cent increase in assets, strengthening the company’s balance sheet and increasing its market presence. Management noted that a larger capital base is expected to improve share liquidity, enhance the likelihood of broker and research coverage, and attract greater engagement from financial planners.
Importantly, the increase in scale is also anticipated to reduce the fixed expense ratio, delivering structural cost benefits to shareholders over time.
Capital to Target Market Mispricing Opportunities
Proceeds from the raising will be deployed in line with WAM Active’s established and flexible investment framework, which focuses on identifying pricing inefficiencies in the Australian equity market. The company indicated that prevailing market conditions are presenting attractive trading opportunities, reinforcing the strategic timing of the capital injection.
With enhanced liquidity, increased scale and strong investor backing, WAM Active is positioned to capitalise on short-term market dislocations while continuing to pursue its objective of delivering regular fully franked dividends and positive risk-adjusted returns over time.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Has WAM Actives AU$70.7 Million Oversubscribed Capital Raise Strengthened Its Investment Firepower?
Highlights:
Strong Shareholder Backing Drives Oversubscription
WAM Active Limited (ASX:WAA) has successfully closed its 2-for-3 pro-rata non-renounceable entitlement offer alongside a shortfall offer and institutional placement, raising a combined AU$70.7 million. The entitlement offer attracted AU$20.5 million from 997 shareholders, while the Top-Up Facility contributed an additional AU$5.4 million from 315 participants.
The strong uptake from existing investors underscores continued confidence in the company’s active investment strategy and track record. Every qualifying shareholder who applied under the entitlement offer and the Top-Up Facility will be allotted the complete number of shares they requested.
Institutional Demand Supports Additional Placement
Following the entitlement offer, the shortfall component and placement raised AU$44.8 million, reflecting significant interest from professional and sophisticated investors. Due to the strength of demand, the company proceeded with an additional institutional placement of approximately AU$19.3 million to accommodate further participation.
The new shares issued through the placement were offered at the same price as those under the entitlement offer and will carry identical rights to existing shares from the time they are allotted. The share issuance was completed using the company’s existing authority to issue equity under the ASX Listing Rules.
Expanded Capital Base Enhances Market Position
The capital raising results in an 84 per cent increase in assets, strengthening the company’s balance sheet and increasing its market presence. Management noted that a larger capital base is expected to improve share liquidity, enhance the likelihood of broker and research coverage, and attract greater engagement from financial planners.
Importantly, the increase in scale is also anticipated to reduce the fixed expense ratio, delivering structural cost benefits to shareholders over time.
Capital to Target Market Mispricing Opportunities
Proceeds from the raising will be deployed in line with WAM Active’s established and flexible investment framework, which focuses on identifying pricing inefficiencies in the Australian equity market. The company indicated that prevailing market conditions are presenting attractive trading opportunities, reinforcing the strategic timing of the capital injection.
With enhanced liquidity, increased scale and strong investor backing, WAM Active is positioned to capitalise on short-term market dislocations while continuing to pursue its objective of delivering regular fully franked dividends and positive risk-adjusted returns over time.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au