CBA’s buyback oversubscribed by $18b

Commonwealth Bank has completed its $6 billion buyback, and $24 billion worth of demand forced the bank to scale back investors by 79.4 per cent.

The bank will buy 67.7 million shares from investors or 3.82 per cent of the shares on issue and cancel them, increasing the share of profit attributable to each remaining CBA share.

CBA announced the final buyback discount of 14 per cent on shares with a face value of $103.05 on Monday morning. Investors will receive $88.62 for each share successfully tended including a $21.66 capital component and a fully franked dividend of $66.96.

“Due to the strong demand for the buyback, a scale back of applications was required. In line with the terms of the buyback booklet, the scale back was structured to minimise disadvantaging shareholders with a small number of shares,” the bank said in a statement.

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