The Bank of Queensland (BOQ) remains in a trading halt after announcing a $91 million half-year loss.
The bank plans to raise $450 million to strengthen its capital position.
BOQ managing director, Stuart Grimshaw, says a tourism downturn and recent flooding and cyclones had hurt Queensland.
“BOQ’s underlying performance was achieved against a backdrop of continued variability in the strength of the Queensland economy, which has negatively impacted the commercial and residential property market,” he says.
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BOQ will issue 74 million new shares as part of the raising – accounting for about one third of the shares it currently has on issue. New shares will be equal to the old shares and will all receive a fully franked dividend of 26 cents, announced today.
There will be an institutional placement of about $150 million and existing shareholders will be offered about $300 million worth of new shares in an entitlement offer.
“This equity-raising will strengthen our balance sheet and provide Bank of Queensland with the capacity for continued growth,” Grimshaw said.
BOQ was trading at $7.30 on Friday. Source ASX.
Below: Bank of Queensland’s share price, and underneath, the volume of shares traded. Source: ASX