Insights

WAM Leaders (ASX:WLE) share price returns to trading after capital raise

WAM Leaders is back on the market…
The post WAM Leaders (ASX:WLE) share price returns to trading after capital raise appeared first on The Motley Fool Australia. –

The WAM Leaders Ltd (ASX: WLE) share price has just returned to ASX trading after a trading halt lifted on the Listed Investment Company (LIC).

WAM Leaders first announced the halt yesterday pending a capital raising announcement. It stated that its shares will return to the ASX boards “following the announcement of the proposed outcome of the capital raising”.

Well, today we got the news that said capital raising had been completed.

The company will raise $277.2 million from the program. This will result in the issuing of 25 million additional shares to the market. It initially allowed existing retail shareholders to apply for new shares on a a pro-rata basis. This consisted of a 1-for-5 entitlement offer at a price of $1.44 a share.

Today, WAM Leaders announced that the offer closed fully subscribed. More than 80% of the funds raised came from WAM Leaders shareholders. The LIC allowed the shortfall to be made up by “eligible professional and sophisticated investors”.

WAM raises $277 million in new funds

WAM Leaders tells us that these developments will allow the LIC to grow to having “more than $1.5 billion” in assets under management. As such, this makes the company “one of the largest Listed Investment Companies on the ASX”.

Here’s some of what WAM founder chair Geoff Wilson had to say on the news:

We greatly appreciate the trust, loyalty and support we have received from WAM Leaders shareholders. More than 80% of the funds in the Entitlement Offer were taken up by existing WAM Leaders shareholders, raising more than $193.6 million…

We are pleased to provide shareholders with a stream of fully franked dividends. In particular those shareholders who have committed additional capital to the Company through the Entitlement Offer.

In the latter remarks, Mr Wilson was referring to the offer’s attached carrot. This incentive is that the new shares will receive the FY2022 interim dividend of 4 cents per share that the company will pay out later this year.

The company tells us that this dividend will be worth an annualised yield of 5.6% (or 8% grossed-up with full franking) at the entitlement price of $1.44 per share.

Lead portfolio manager Matthew Haupt added this:

The WAM Leaders Investment team is excited and honoured to be entrusted with the additional capital raised from shareholders. We stand ready to capitalise on the many opportunities we have identified.

About the WAM Leaders share price

At the time of writing, the WAM Leaders share price has successfully returned to trading. It is down 2% so far this afternoon to $1.50 a share. This LIC is one of the growing stable of WAM Listed Investment Companies that the venerated investor now runs.

In this LIC’s case, it concentrates on the larger companies in the ASX 200. Management attempts to identify “large-cap companies with compelling fundamentals, a robust macroeconomic thematic and a catalyst”. Since its inception in May 2016, WAM Leaders has returned an average performance of 14.9% per annum (not including fees and taxes).

The post WAM Leaders (ASX:WLE) share price returns to trading after capital raise appeared first on The Motley Fool Australia.

Should you invest $1,000 in WAM Leaders right now?

Before you consider WAM Leaders, 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 WAM Leaders 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 May 24th 2021

More reading

Why Telstra (ASX:TLS) shares could be a buy before reporting season
3 ASX shares to win when lockdown ends

WAM Leaders thinks these ASX shares might be buys

Which ASX 200 shares helped deliver record profits and a 4.5% dividend?

Motley Fool contributor Sebastian Bowen 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!