Suncorp continues raising capital
Suncorp intends to put more capital into its reserves with a $502 million 1-for-5 rights issue announced on Friday.
The issue price is $4.50 per new share. Suncorp’s shares traded at around $5.60 on Monday morning.
The group has been exposed to bad debts relating to its banking operations in the wake of the global financial crisis. Suncorp is also heavily exposed to insurance claims coming out of the Victorian bushfires and Queensland floods, but its reinsurance position is expected to see it through.
The latest issue follows the announcement a week earlier that Suncorp planned a $900 million capital raising incorporating a $390 million underwritten institutional placement, a 1-for-5 accelerated non-renounceable entitlement offer to raise $410 million and a first-half dividend reinvestment plan up to $100 million.
“The companies that will work their way though [the global financial crisis] and emerge stronger will be those that adopt conservative positions and build sufficient buffers, particularly when it comes to capital management,” Suncorp said in a statement.
The issue price is $4.50 per new share. Suncorp’s shares traded at around $5.60 on Monday morning.
The group has been exposed to bad debts relating to its banking operations in the wake of the global financial crisis. Suncorp is also heavily exposed to insurance claims coming out of the Victorian bushfires and Queensland floods, but its reinsurance position is expected to see it through.
The latest issue follows the announcement a week earlier that Suncorp planned a $900 million capital raising incorporating a $390 million underwritten institutional placement, a 1-for-5 accelerated non-renounceable entitlement offer to raise $410 million and a first-half dividend reinvestment plan up to $100 million.
“The companies that will work their way though [the global financial crisis] and emerge stronger will be those that adopt conservative positions and build sufficient buffers, particularly when it comes to capital management,” Suncorp said in a statement.