ASX Limited (ASX: ASX) has announced that it is undertaking a fully underwritten 2 for 19 pro rata accelerated renounceable entitlement offer (with retail entitlements trading) of new ASX ordinary shares to raise around $553 million at a price of $30.00 per share.
The exchange has outlined where the proceeds from the Entitlement Offer will be allocated, including:
- Contribute $200 million additional equity to ASX Clear (Futures) – the clearing facility and central counterparty for all futures, options on futures and ASX listed CFDs;
- Replace the existing $250 million unsecured, non-recourse debt facility of ASX Clearing Corporation (a wholly owned subsidiary of ASX) with equity capital; and
- Fund current and future growth initiatives and support other licensed subsidiaries of ASX.
ASX Limited said that it expects that the investment of additional equity in ASX Clear (Futures) will enable it to meet emerging international capital standards for central clearing counterparties, which are anticipated to be higher than previous standards.
Funding position following the offer
Following the Entitlement Offer, the ASX will have no external debt facilities and the total equity capital contributed by ASX to its clearing houses will reach $700 million, including $250 million in ASX Clear and $450 million in ASX Clear (Futures).
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