WAM Active Limited has successfully closed an oversubscribed entitlement offer, raising $70.7 million and increasing its asset base by over 84%, enhancing liquidity and market presence.
- Oversubscribed 2 for 3 pro-rata entitlement offer
- Total capital raised of $70.7 million
- Asset base increased to more than $154.8 million
- Over 50% of funds contributed by existing shareholders
- Proceeds to be invested in Australian equity market opportunities
Strong Capital Raise Reflects Shareholder Confidence
WAM Active Limited (ASX: WAA) has completed a significant capital raising event, closing its 2 for 3 pro-rata non-renounceable entitlement offer oversubscribed. The company raised a total of $70.7 million through a combination of the Entitlement Offer, Top-Up Facility, Shortfall Offer, and an institutional Placement. This strong result underscores robust support from existing shareholders, who contributed more than half of the capital raised.
Substantial Growth in Asset Base and Market Presence
The capital raise increases WAM Active’s asset base by over 84%, lifting total assets under management to more than $154.8 million. This expansion is expected to improve liquidity in the company’s shares and enhance its relevance in the market. The larger capital base may attract increased broker and research coverage, as well as greater interest from financial planners and institutional investors.
Strategic Use of Proceeds and Investment Outlook
Proceeds from the capital raising will be deployed following WAM Active’s proven and flexible investment approach, which focuses on identifying mispricing opportunities within the Australian equity market. The company’s management team remains confident in the current market environment, viewing it as ripe with attractive trading opportunities that can drive portfolio outperformance.
Key Dates and Dividend Outlook
New shares from the Entitlement Offer and Top-Up Facility are expected to be issued on 27 February 2026, with shares from the Shortfall Offer and Placement to follow on 2 March 2026. WAM Active also maintains a strong dividend policy, with an annualised fully franked interim dividend yield of 6.4% and a special fully franked dividend of 1.0 cent per share recently announced, reflecting the company’s commitment to delivering regular income to shareholders.
Leadership Perspective
Chairman Geoff Wilson AO highlighted the importance of the capital raise in scaling the company and benefiting shareholders through improved market positioning and reduced fixed expense ratios. Lead Portfolio Manager Oscar Oberg expressed gratitude for shareholder trust and reaffirmed the team’s focus on capitalising on identified market opportunities to continue delivering returns.
Bottom Line?
WAM Active’s successful capital raise sets the stage for enhanced market presence and continued pursuit of attractive investment opportunities.
Questions in the middle?
- How will the increased asset base impact WAM Active’s investment strategy and risk profile?
- What are the anticipated effects on share liquidity and trading volumes post-issuance?
- How might the company’s dividend policy evolve with the expanded capital base?