Shares in QBE Insurance Group have risen after the insurance giant raised $450 million from institutional investors and sought to raise another $150 million from retail investors.
QBE’s stock on the Australian Securities Exchange finished 15 cents, or 1.3 per cent, higher at $11.65.
The insurer on Wednesday lifted a trading halt on its stock after completing a placement of about 42 million ordinary shares to institutions at a price of $10.70 per share to replace its current tier two convertible debt.
It also offered Australian and New Zealand retail investors the chance to invest up to $15,000 each before the offer closes on March 26.
Strong demand from domestic and offshore institutional shareholders ensured the placement was well oversubscribed, the insurer said in a statement.
QBE originally sought to raise $US500 million ($A465.2 million) to replace the convertible debt with equity, because the debt may not be treated as regulatory capital under new proposals by the prudential regulator.
QBE is seeking to reduce uncertainty in the market and preserve its capital base, retiring chief executive Frank O’Halloran told analysts on Tuesday after the insurer posted a 45 per cent plunge in annual net profit.
QBE annual 2011 statutory profit plummeted to $US704 million ($A655 million) to December 31, down from $US1.278 billion ($A1.19 billion) a year earlier.
