WAM Income Maximiser Hits $300M Funds Under Management After $148M Capital Raise
WAM Income Maximiser Limited has successfully raised $148 million through a Share Purchase Plan and Placement, expanding its funds under management beyond $300 million and declaring fully franked dividends with growth guidance through early 2026.
- Raised $148 million via Share Purchase Plan and Placement
- Funds under management exceed $300 million since April 2025 IPO
- 45% shareholder participation in the Share Purchase Plan
- Declared fully franked dividends starting at 0.35 cents per share
- Investment portfolio outperformed benchmark with focus on quality equities and corporate debt
Strong Capital Raise Signals Confidence
WAM Income Maximiser Limited (ASX, WMX) has announced a significant capital raise totaling $148 million through a combination of a Share Purchase Plan (SPP) and a Placement. This milestone comes just months after the company’s April 2025 initial public offering, pushing its funds under management to over $300 million. The SPP saw robust participation, with 45% of eligible shareholders subscribing, reflecting strong investor confidence in the company’s strategy and outlook.
Shareholder-Friendly Pricing and Full Allocation
The SPP offered shares at $1.572 each, representing a modest discount of 2.5% to the five-day volume weighted average price and 3.0% to the closing price prior to the offer. Importantly, all shareholders who applied received their full allocation, a move that underscores the company’s commitment to rewarding loyal investors. The Placement, which raised $120.2 million from wholesale and sophisticated investors, was significantly oversubscribed, indicating strong demand beyond the retail base.
Dividend Growth and Income Focus
Alongside the capital raise, WAM Income Maximiser declared a fully franked dividend of 0.35 cents per share for November 2025, with guidance for increasing dividends through to March 2026. Including franking credits, the dividend yield is notably enhanced, appealing to income-focused investors. The company’s Dividend Reinvestment Plan remains active, allowing shareholders to compound their investment without brokerage fees.
Portfolio Performance and Strategy
Lead Portfolio Manager Matthew Haupt highlighted the portfolio’s strong performance, which has outpaced its benchmark since mid-May 2025. The investment approach balances high-quality Australian equities with investment-grade corporate debt, aiming to deliver both capital growth and above-market dividend yields. Currently, the portfolio is overweight equities, with particular interest in resource stocks, while maintaining a short duration stance in debt to manage risk.
Implications of Increased Scale
The enlarged capital base is expected to enhance liquidity in WMX shares, potentially attracting greater broker and research coverage and increasing interest from financial planners. Additionally, the company anticipates a reduction in its fixed expense ratio, which should benefit all shareholders by improving cost efficiency. This scale also positions WAM Income Maximiser to access a broader range of market opportunities, reinforcing its relevance in the competitive LIC landscape.
Bottom Line?
With a strengthened capital base and rising dividends, WAM Income Maximiser is poised to deepen its market impact and deliver on its income growth ambitions.
Questions in the middle?
- How will the portfolio’s overweight in resource stocks perform amid evolving market conditions?
- What impact will increased liquidity have on WMX’s share price and investor base?
- Can WAM Income Maximiser sustain dividend growth if market volatility increases?
