WAM Active’s Oversubscribed Raise Signals Growing Market Confidence
WAM Active Limited has successfully closed an oversubscribed entitlement offer and placement, raising $70.7 million to boost its investment capacity and shareholder value.
- Oversubscribed 2-for-3 pro-rata entitlement offer raises $20.5 million
- Top-Up Facility adds $5.4 million from existing shareholders
- Shortfall Offer and Placement raise $44.8 million from professional investors
- Capital raising increases assets by 84%, enhancing liquidity and reducing expense ratios
- Funds to be deployed in Australian equity market mispricing opportunities
Strong Demand Drives Oversubscribed Capital Raise
WAM Active Limited (ASX: WAA) has completed a significant capital raising initiative, successfully closing an oversubscribed 2-for-3 pro-rata non-renounceable entitlement offer alongside a top-up facility, shortfall offer, and institutional placement. The combined efforts have raised a total of $70.7 million, reflecting robust investor appetite and confidence in the company’s active investment strategy.
The entitlement offer itself attracted $20.5 million from nearly a thousand existing shareholders, while the top-up facility contributed an additional $5.4 million. The shortfall offer and placement, targeted at professional and sophisticated investors, brought in $44.8 million, underscoring strong institutional interest. The placement was conducted under ASX Listing Rules 7.1 and 7.1A, with shares issued at the same price as the entitlement offer, ensuring fairness and consistency for all investors.
Implications for Shareholders and Market Position
This capital injection represents an 84% increase in WAM Active’s assets, a substantial boost that is expected to enhance the liquidity of its shares and improve the company’s profile among brokers and financial planners. The larger capital base is also anticipated to reduce the fixed expense ratio, delivering cost efficiencies that benefit all shareholders.
WAM Active’s investment approach focuses on identifying market mispricing opportunities within the Australian equity market, a strategy that has historically delivered strong portfolio outperformance. The company’s management highlighted that current market conditions present attractive trading opportunities, positioning WAM Active to leverage its increased funds effectively.
Looking Ahead
The new shares from the entitlement offer and top-up facility are expected to be issued by 27 February 2026, with shares from the shortfall offer and placement to follow on 2 March 2026. This timely issuance will enable WAM Active to deploy capital swiftly in pursuit of its investment objectives, which include delivering regular fully franked dividends, preserving capital, and maintaining low volatility returns.
Wilson Asset Management, the investment manager behind WAM Active, brings over 28 years of experience and manages more than $6 billion across multiple listed investment companies. This capital raise further solidifies WAM Active’s position as a key player in the Australian investment landscape.
Bottom Line?
With a strengthened capital base and strong investor backing, WAM Active is poised to capitalise on market opportunities while enhancing shareholder value.
Questions in the middle?
- How will WAM Active deploy the $70.7 million in the current market environment?
- What impact will the increased capital base have on future dividend payments?
- Will the enhanced liquidity attract new institutional investors or broker coverage?
