AMP completes $650m capital raising

AMP shares have begun to climb from a historic low after emerging from a trading halt on the completion of its $650 million capital raising.

The financial services and banking firm announced at its half-year results on Thursday it was launching the institutional placement and share purchase plan to help pay for a $1.3 billion, three-year transformation program.

The placement was priced at $1.60 per new share – a 7.5 per cent discount on an already historically low close of $1.73 on Wednesday.

About 406.3 million new fully paid ordinary shares will be issued and are expected to settle on Tuesday, with allotment and trading to occur the following day.

“The funds raised will allow us to immediately implement our transformational strategy to create a simpler, higher-growth and higher-return AMP that’s focused on customers,” chief executive Francesco De Ferarri said.

Shares in AMP jumped by as much as 8.1 per cent to $1.87 after the halt was lifted on Friday and were still 7.51 per cent higher at $1.86 by 1030 AEST.

The company had announced a $2.3 billion first-half loss on Thursday after it copped a $2.35 billion writedown that Mr de Ferrari described as a line in the sand before a major overhaul.

AAP

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