Tysers parent AUB Group, has announced that it has successfully raised A$150 million to support its “attractive M&A pipeline”, after completing an oversubscribed placing of 6.25 million new fully paid ordinary shares in A$24.00 per share.
According to the announcement, the shares represent a 7.2% discount to the last traded price of A$25.86 on Wednesday, 17 May 2023.
In addition, the placement is strongly supported by domestic and offshore institutional investors with a demand received that is greater than the size of the placement.
AUB Group also confirmed that due to very strong demand, all new shares under the placement were allocated to existing shareholders.
Elsewhere, the proceeds will also replace an assumed cash inflow of A$100 million that will not materialize after AUB does not proceed with a proposed joint venture with PSC Insurance Group Limited in relation to AUB’s Tysers UK Retail business.
AUB’s CEO, Mike Emmett, commented: “We are very pleased with the increased equity result and believe it is a testament to the strong performance of AUB and the Tysers business. We continue to focus on delivering of our strategy by combining strong organic performance with the execution of accretive M&A. This increase gives us the financial flexibility needed to take advantage of our attractive M&A pipeline, so we thank our investors for their continuous support.
In addition to the placement, AUB also stated that it intends to undertake a non-underwritten SPP targeting to raise approximately A$15 million.
In September 2022, AUB completed its acquisition of wholesale broker Tysers, after discussions about the transaction first took place in April 2022.