WAM Income Maximiser Opens $125 Million Entitlement Offer at $1.62 per Share

Capital Raise Targets Growth and Income

WAM Income Maximiser Limited (ASX:WMX) has launched a substantial capital raising initiative, combining a 2-for-5 pro-rata non-renounceable entitlement offer with a $47 million placement. The entitlement offer, priced at $1.62 per new share, seeks to raise approximately $125.4 million, while the placement adds another $47 million, bringing total gross proceeds to roughly $172.4 million.

The issue price represents a 5.5% discount to the last closing share price of $1.715 on 24 July 2026 and aligns with the company's estimated pre-tax net tangible asset (NTA) backing as of 24 July 2026, adjusted for the August fully franked dividend of 0.64 cents per share. New shares issued will rank equally with existing shares and will be eligible for fully franked dividends from September through December 2026.

Strong Portfolio Performance Supports Offer

The capital raise comes on the back of robust portfolio performance. The investment portfolio grew 19.2% in the 12 months to 30 June 2026, outperforming its benchmark by 13.4% with 17.1% less volatility than the S&P/ASX 300 Accumulation Index. Since inception, WMX has delivered an annualised return of 17.8%, outperforming its benchmark by 7.6% annually and with significantly lower volatility.

Chairman Geoff Wilson AO highlighted that the company continues to deliver both capital growth and a growing stream of monthly fully franked dividends. The entitlement offer presents shareholders with an opportunity to increase their exposure to WMX’s dynamic investment strategy at a discount to the prevailing share price.

Top-Up Facility and Placement Details

Shareholders who fully subscribe to their entitlement may also apply for additional new shares through a Top-Up Facility, subject to board discretion and potential scale back. These additional shares will also be eligible for fully franked dividends starting from September 2026.

The placement component attracted strong demand from professional and sophisticated investors, closing early with allocations subject to scale back. The company raised the maximum $47 million available under the placement, with any shortfall from the entitlement offer expected to be allocated from this bookbuild pool. The shortfall offer is not open to retail investors.

Implications for Shareholders and Market Presence

The capital raising is expected to increase WMX’s assets under management, enhance market liquidity, and potentially attract additional broker and research coverage. The increased scale should also reduce the company’s fixed expense ratio, benefiting all shareholders.

Eligible shareholders in Australia and New Zealand as of the 3 August 2026 record date may participate. The offer closes at 5:00pm Sydney time on 21 August 2026. Shareholders who do not participate will face dilution of up to approximately 35.5% of their holdings, given the scale of the entitlement offer and placement.

Risk Factors and Forward Considerations

WMX’s offer booklet outlines a range of risks, including dilution for non-participating shareholders, market volatility, regulatory changes, and investment strategy execution risks. The offer is not underwritten, meaning subscription levels will determine the final capital raised.

Investors should note that while WMX has a strong track record, past performance is not a reliable indicator of future results. The company’s strategy involves investing in high-quality Australian equities and investment-grade corporate debt instruments, aiming to deliver stable income and capital growth.

With the entitlement offer underway and strong wholesale demand evident, attention will turn to subscription rates and shortfall allocations after the 21 August close. The capital raise positions WMX to pursue new opportunities amid evolving market conditions while maintaining its commitment to delivering fully franked dividends.