Magellan Financial Group (ASX:MFG) has completed a $130 million non-underwritten institutional placement to deepen its investment in financial services firm Barrenjoey.
The capital raising, announced on March 2, involved the issuance of approximately 15.4 million new fully paid ordinary shares at an offer price of $8.45 per share.
The price reflects a marginal 0.1% discount to both the closing price on Feb. 27 and the five-day volume-weighted average price of $8.46.
The placement saw robust demand from a mix of existing shareholders and new institutional investors, reflecting strong market confidence in the group’s strategic direction.
Following a temporary trading halt, MFG shares are expected to resume normal trading on the ASX on March 3, with the formal settlement of the placement scheduled for March 5.
The proceeds from this equity raising are earmarked to fund the acquisition of an incremental 10% economic interest in Barrenjoey from an affiliate of Barclays for $148.9 million.
The move is a critical step in supporting the broader merger between the two entities, though the transaction remains subject to customary regulatory approvals in Australia and Hong Kong, as well as shareholder consent.
Magellan will offer a $20 million non-underwritten share purchase plan to provide eligible retail shareholders with an opportunity to participate in the capital raising on similar terms.
At the time of reporting, Magellan Financial's share price was $10.16.