ANZ Bank shares drop most since 2008 after capital raising plan
[SYDNEY] Australia & New Zealand Banking Group Ltd. shares slid the most in almost seven years on a A$2.5 billion (S$2.5 billion) share sale to raise capital and profit that missed analysts' estimates.
The stock fell as much as 8.5 per cent to A$29.80 in Sydney, the sharpest drop since November 2008. The shares were 6.2 per cent lower at 10:32 am local time, compared with a 1.4 per cent decline for the benchmark S&P/ASX 200 Index.
The Melbourne-based lender said Friday it sold 80.8 million shares at A$30.95 each, a 5 per cent discount to the closing price on Wednesday, to meet new capital rules. The bank reported Wednesday cash profit that missed expectations as bad-debt charges climbed, prompting some analysts cut their earnings forecasts.
The stock was halted from trading Thursday for the share sale to institutional investors. ANZ is also raising another A$500 million by selling stock to existing shareholders.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover