Bank of Queensland Managing Director David Liddy today announced that the Bank's Share Purchase Plan (SPP), which closed on Monday, had been 25 per cent over-subscribed.
Mr Liddy told today's Annual General Meeting that the Bank had announced it was looking for up to $40 million in new capital from the SPP.
Instead, we have raised $50 million in capital from our shareholders, which is an extraordinarily strong result, Mr Liddy said.
So as not to disappoint those shareholders, and to ensure we are sufficiently capitalised to fund future planned growth, Bank of Queensland has decided to accept the entire amount for which shareholders subscribed, he said.
It is also extremely rewarding that 35 per cent of Bank of Queensland's shareholders took part in the Share Purchase Plan, which is a powerful endorsement of the Bank's strategies and future growth prospects.
Shareholders were able to apply for up to $5,000 worth of new shares. The minimum application was $1,000.
The issue price will be the lesser of:
(a) $10.37, being the Volume Weighted Average Price ('VWAP') over the 5 business days before 2 November 2004, less a 2.5% discount; and
(b) the VWAP over the 5 business days after the closing date for the offer (6 December, 2004) on which shares are traded ('pricing period') less a discount of 2.5%.
The Bank will announce the final issue price to the ASX as soon as it is calculated after close of trading on Monday, December 13.
BOQ shares closed at $10.70 yesterday, December 8, 2004.