WQG’s $1.75 Share Placement and Entitlement Offer Secures $85 Million Capital

• Raised $45 million via share placement to sophisticated investors
• Entitlement offer to existing shareholders to raise up to $39.8 million
• Offer price set at $1.75 per share, representing a discount to recent prices and NTA
• New shares eligible for upcoming fully franked dividends
• Strong historical outperformance and progressive dividend policy underpin capital raising

Capital Raising Overview

WCM Global Growth Limited (ASX: WQG) has announced a significant capital raising initiative comprising a $45 million share placement and a pro-rata non-renounceable entitlement offer targeting up to $39.8 million. The combined $85 million raise is priced at $1.75 per share, reflecting a modest discount to the recent volume-weighted average share price and the company’s post-tax net tangible asset (NTA) value.

This capital injection is intended to support WQG’s existing investment strategy, managed by WCM Investment Management LLC, which focuses on quality global growth stocks with expanding competitive moats. The new funds will enable the company to increase its market capitalisation, improve liquidity, and broaden its shareholder base, while also delivering economies of scale on operating costs.

Investor Participation and Offer Details

The entitlement offer allows eligible shareholders in Australia and New Zealand to acquire one new share for every ten held as of 24 February 2026. Shareholders who fully subscribe may also apply for additional shares under a Top-Up Facility, with allocations at the board’s discretion. The placement targeted wholesale and sophisticated investors, issuing approximately 25.7 million shares, representing 11% of existing capital.

Importantly, new shares issued under both the placement and entitlement offer will rank equally with existing shares and be entitled to the upcoming fully franked interim dividend of 2.16 cents per share payable in April 2026. The company projects investors in the offer to receive dividends totaling 11.46 cents per share over the next 13 months, translating to a net yield of 6.55% based on the offer price.

Strong Track Record and Investment Philosophy

WQG has a well-established track record, having outperformed its benchmark, the MSCI All Country World Index (ex-Australia), by 2.71% per annum since its 2017 inception. The portfolio is concentrated in high-growth sectors such as technology, healthcare, and consumer discretionary, providing Australian investors with valuable diversification beyond the local market.

The investment philosophy centres on identifying companies with rising competitive advantages and strong corporate cultures, managed by a seasoned team led by portfolio managers Paul Black and Mike Trigg. The company’s progressive quarterly dividend policy and active capital management, including a dividend reinvestment plan and ongoing share buy-back program, further enhance shareholder value.

Risks and Market Considerations

While the capital raising reflects confidence in WQG’s strategy and market position, the offer is not underwritten, introducing some execution risk. Investors should also consider inherent risks such as market volatility, currency fluctuations, foreign investment exposures, and the sensitivity of growth-focused investments to earnings expectations. The company advises shareholders to seek professional advice and consider these factors carefully.

Bottom Line?

WQG’s $85 million capital raise positions it for continued growth and dividend strength, but investors will watch closely how the market absorbs the new shares and the company navigates ongoing risks.

Questions in the middle?

• Will the entitlement offer achieve full subscription given it is not underwritten?
• How will the increased capital impact WQG’s portfolio allocation and risk profile?
• What is the market’s reaction to the discount pricing relative to recent share prices and NTA?