ANZ’s mum & dad shareholders dig deep

ANZ Bank has had a huge and unexpected response to its capital raising from its small shareholder base. Forty five percent or 178,000 people applied for the new stock being issued by the bank at the discounted level of $14.40 per share. About three quarters of those people applied for, and received, the maximum $15,000 worth of shares.

ANZ raised an Australian record $2.2 billion during the capital raising which CEO Mike Smith said was a major endorsement of the bank's Asian expansion plans. However the dilution of the shareholder base is expected to put pressure on dividends.

Source: The Age