AUB Group (ASX:AUB) has completed a $400 million institutional placement, drawing significant demand from both existing shareholders and new investors.
The placement involved the issuance of approximately 13.6 million new shares at a fixed price of $29.40, representing a 7.9% discount to the company's last traded price on Jan. 23.
Combined with new debt facilities, the capital raised is earmarked to fund the acquisition of Prestige, a move CEO Mike Emmett describes as a critical step in accelerating the group's UK retail strategy.
In addition to the institutional raise, AUB Group will launch a non-underwritten share purchase plan targeting an additional $40 million.
This offer allows eligible shareholders in Australia and New Zealand to apply for up to $30,000 worth of shares at a potential discount.
The SPP is scheduled to open on February 4 and close on Feb. 26.
At the time of reporting, AUB Group's share price was $30.13.