WAM Active Targets $173M Capital Raise via Entitlement Offer and Placement

Capital Raising Overview

WAM Active Limited (ASX – WAA), a well-established player in the investment management sector, has unveiled plans for a substantial capital raising initiative. The company intends to raise approximately $154 million through a pro-rata non-renounceable entitlement offer, allowing existing shareholders to subscribe for two new shares for every three shares they currently hold. Each new share will be priced at $1.00, with the offer set to open on 6 February 2026.

Alongside the entitlement offer, WAM Active is conducting a placement of approximately $19.3 million targeted at professional and sophisticated investors. This placement will be issued on 2 March 2026, coinciding with the settlement of any shortfall shares from the entitlement offer. The combined capital raising effort is designed to enhance the company’s financial flexibility and support its ongoing investment strategies.

Shareholder Participation and Dilution

The entitlement offer is structured as a pro-rata issue, which means existing shareholders have the opportunity to maintain their proportional ownership by participating fully. Shareholders who take up their full entitlement may also apply for additional shares through a top-up facility, while any remaining shortfall will be offered to eligible investors under the same terms.

WAM Active has indicated that, given this structure, the entitlement offer and placement are not expected to materially affect the control of the company. However, shareholders who do not participate may experience dilution of their holdings. The company has complied with all relevant provisions of the Corporations Act and ASX Listing Rules, ensuring transparency and regulatory adherence throughout the process.

Strategic Implications and Market Position

This capital raising aligns with WAM Active’s broader strategy to deliver consistent returns with low volatility and preserve capital for its investors. With over $6 billion in funds under management and a track record spanning more than two decades, the company is well-positioned to leverage this fresh capital to pursue new investment opportunities and enhance shareholder value.

The timing of the placement settlement alongside the shortfall shares issuance is a tactical move to streamline the capital raising process. It also signals confidence from professional investors, who are expected to participate actively in the placement.

Looking Ahead

As the entitlement offer opens, market participants will be closely watching shareholder uptake and the subsequent impact on WAM Active’s share price and capital structure. The company’s management, led by Chairman Geoff Wilson AO and CEO Kate Thorley, has emphasized their commitment to maintaining a balanced approach that supports growth while safeguarding investor interests.