WAM Active Raises $70.7M via $51.4M Entitlement Offer and $19.3M Placement at $1.00 Share Price

Entitlement Offer Details and Rationale

WAM Active Limited (ASX, WAA), a listed investment company managed by Wilson Asset Management, has announced a significant capital raising through a 2-for-3 pro-rata non-renounceable entitlement offer priced at $1.00 per new share. This represents a 7.8% discount to the closing share price of $1.085 on 29 January 2026. The offer is expected to raise approximately $51.4 million, providing existing eligible shareholders in Australia and New Zealand the opportunity to increase their holdings at an attractive price point.

The entitlement offer is complemented by a $19.3 million institutional placement following an oversubscribed bookbuild, reflecting strong demand from both existing sophisticated investors and new wholesale participants. This combined capital raising of roughly $70.7 million will be deployed in line with WAM Active’s active and flexible investment approach, which focuses on exploiting market mispricing opportunities within the Australian equity market.

Investment Strategy and Portfolio Performance

WAM Active’s investment portfolio has demonstrated robust performance, with a 41.4% increase over the 12 months to 31 December 2025 and a 37.9% gain since the start of the current financial year. The portfolio’s success is attributed to dynamic stock selection and portfolio construction, overseen by Lead Portfolio Manager Oscar Oberg and Deputy Portfolio Manager Shaun Weick.

The capital raised will further enhance the company’s ability to capitalise on these opportunities, potentially increasing scale and liquidity, reducing fixed expense ratios, and attracting additional broker and research coverage. The fund’s flexible mandate allows it to maintain a modest cash position to seize emerging market opportunities as they arise.

Shareholder Benefits and Offer Mechanics

Eligible shareholders who participate in the entitlement offer will receive two new shares for every three shares held as of the record date, with no brokerage costs. New shares will be entitled to the fully franked interim dividend of 3.2 cents per share and a special fully franked dividend of 1.0 cent per share, enhancing the income appeal of the offer.

Additionally, shareholders who fully subscribe to their entitlement may apply for additional shares through a Top-Up Facility, subject to board discretion and scale back if oversubscribed. Any shortfall remaining after the entitlement and top-up offers will be allocated via the Shortfall Offer to professional and sophisticated investors, ensuring full placement of the capital raise.

Risks and Considerations

While the offer presents an opportunity to increase exposure to WAM Active’s proven investment strategy, shareholders should be mindful of dilution risks if they do not participate fully. The company’s share capital could nearly double, potentially diluting non-participating shareholders by up to 47.8%. Market risks, regulatory changes, and the inherent volatility of equity investments also remain pertinent considerations.

The offer is not underwritten, adding an element of execution risk, although the strong demand evidenced by the oversubscribed bookbuild provides some confidence in successful completion. Shareholders are encouraged to review the detailed risk factors and seek professional advice before participating.

Timetable and Next Steps

The entitlement offer opened on 6 February 2026 and will close at 5, 00pm Sydney time on 20 February 2026. New shares are expected to be issued on 27 February 2026, with trading commencing on a deferred settlement basis from 23 February and normal trading from 2 March 2026. The placement and any shortfall shares will be issued and commence trading shortly thereafter.

WAM Active’s management and board have expressed confidence in the offer and the company’s outlook for 2026, highlighting the continued potential for strong portfolio performance and shareholder returns.