Westpac has exceeded its capital raise target by $270 million despite more than 3000 retail investors dropping out following allegations the bank failed to properly vet 23 million transactions, some of which were linked to child exploitation in the Philippines.
Westpac was aiming to raise $500 million from retail investors as part of a $2.5 billion raise. Retail investors could apply for up to $30,000 of shares at a price determined by the weighted average price over a five trading day period, under the bank’s Share Purchase Plan (SPP).
The share price for retail investors ended at $24.20 and the bank had applications from 40,900 shareholders who raised a total of $770 million.
Westpac launched a capital raising in early November to strengthen its balance sheet. The raising was split between a $2 billion institutional placement and $500 million from smaller investors.