Suncorp (ASX:SUN) share price on watch amid $350m capital raising

Shares in the Aussie financial group will be in focus today
The post Suncorp (ASX:SUN) share price on watch amid $350m capital raising appeared first on The Motley Fool Australia. –

The Suncorp Group Ltd (ASX: SUN) share price will be on watch this morning after the financial group’s latest capital raising announcement.

Suncorp share price in focus after unveiling $350 million capital raising

Suncorp this morning launched an offer of Capital Notes 4 as it seeks to raise $350 million. The Notes will trade on the Australian Securities Exchange (ASX) under the ticker SUNPI from 24 September 2021.

The Capital Notes 4 will have a face value of $100 with a minimum investment of $5,000 and in multiples of 10 (i.e. $1,000) after that. The Suncorp share price will be one to watch in early trade after the company unveiled its latest capital raising plans to the market.

Capital Notes such as these are a more flexible way for companies like Suncorp to raise funds.

They represent more of a hybrid instrument with a mix of bond and equity-like features. Capital Notes can help lower the cost of capital and provide flexibility in the financial group’s capital structure.

The Capital Notes 4 will have fully franked distributions paid quarterly, similar to a dividend, at a rate of the 3-month Bank Bill Rate (BBSW) plus a 2.90% to 3.10% per annum margin (more like a bond coupon).

The Suncorp share price will be on the radar today after a solid month in August. Shares in the Aussie financial group are up 7.5% in the past month ahead of Monday’s open.

What else is moving Suncorp right now?

Much of those gains came on Monday 9 August following Suncorp’s latest full-year result. The Suncorp share price jumped 7.8% higher after the company unveiled strong profit growth and a $250 million share buyback scheme.

Some of the key takeaways from the result included:

Revenue down 4% on the prior corresponding period (pcp) to $14.2 billion.
Cash earnings up 42% on the pcp to $1.1 billion.
Net profit after tax up 13% on the pcp to $1.0 billion.
Final dividend per share of 40 cents and special dividend of 8 cents.

The Suncorp share price charged higher following the announcement as the company announced a focus on sustainable return on equity.

The post Suncorp (ASX:SUN) share price on watch amid $350m capital raising appeared first on The Motley Fool Australia.

Should you invest $1,000 in Suncorp right now?

Before you consider Suncorp, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Suncorp wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How does the IAG (ASX:IAG) earnings result compare to Suncorp?
2 high yield ASX dividend shares named as buys

Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking

2 quality ASX shares for a retirement portfolio

Top brokers name 3 ASX shares to buy today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!