Biggest institutional placements in Australian market

May 25, 2019

This list tracks the biggest institutional placements by ASX listed companies.

NAB: $3 billion placement in November 2008 at $20 a share and then only a further $250 million raised in a share purchase plan in December 2008 which was priced at $19.97 a share and brought the total raising to $3.25 billion. Backed up with another $2 billion institutional placement at $21.50 a share in July 2009, accompanied by an SPP capped at $750 million, despite receiving applications worth $2.6 billion. Retail investors are owed up to $3 billion worth of SPPs to restore the balance.

Westfield: $2.9 billion placement in early 2009 to pay down debt after the GFC hit.

Westpac: $2.5 billion placement in December 2008 at $16 a share followed by a share purchase plan in January 2009 which pulled in an additional $442 million so total of $2.94 billion raised. Given retail investors own about 40% of Westpac, the mums and dads are owed an SPP worth at least $1 billion.

ANZ: launched a snap $2.5 billion raising via an institutional placement on Thursday August 6, 2015. The 80.8 million shares were underwritten by brokers Citi, Deutsche Bank and JPMorgan at $30.95 a share.

Commonwealth Bank: $2 billion raised through institutional placement at $38 a share in October 2008 to fund BankWest acquisition.

Commonwealth Bank: another $2 billion raised from institutions at $26 a share on December 18, 2008 with a share purchase plan that attracted applications of $865 million with no scale back. However, retail were still shafted twice because there was no SPP with the first raising and in the second they missed out on the $1.13 fully franked dividend that institutions pocketed. Retail investors are owed at least a $1 billion SPP.

CSL: $2 billion placement to fund US acquisition in August 2008 at $36.75 a share and then followed up with $143 million raised through a share purchase plan, bringing the total to $2.143 billion. Retail investors owed another SPP worth at least $500 million, although the US acquisition fell over so the business now has too much capital.

Dexus: $900 million placement in May 2019 to fund acquisition of 80 Collins Street.

Wesfarmers: $900 million placement to two institutions at $14.25 as part of $4.5 billion capital raising in early 2009. The rest was a 3-for-7 entitlement offer at $13.50, although retail investors only took up $1.6 billion of their $3 billion entitlement so the dilution has been enormous, especially with Wesfarmers shares now well north of $30.

Newcrest: $750 million institutional placement at $27 a share on February 2, 2009 with a follow-up $5000 share purchase plan which only brought in an extra $59 million. Given the law now allows for $15,000 SPPs, Newcrest could and should come back with another $10,000 SPP to raise at least $100 million from retail investors.