Why the Bank of Queensland (ASX:BOQ) share price is up 10% to a 52-week high

The Bank of Queensland Limited (ASX:BOQ) share price is racing higher and hit a 52-week high on Tuesday. Here’s why it’s surging higher…
The post Why the Bank of Queensland (ASX:BOQ) share price is up 10% to a 52-week high appeared first on The Motley Fool Australia. –

BOQ, bank of Queensland

The Bank of Queensland Limited (ASX: BOQ) share price has returned from its trading halt with a bang.

This afternoon the regional bank’s shares have raced 10% higher to a 52-week high of $9.25.

When the Bank of Queensland share price hit that level, it meant they were up a remarkable 57% in the space of six months.

Why is the Bank of Queensland share price racing higher?

Investors have been buying the bank’s shares today after it announced the successful completion of the institutional component of its capital raising.

According to the release, the bank raised a total of $673 million from institutional investors via an underwritten 1 for 3.34 accelerated pro rata non‐renounceable entitlement offer and placement.

These funds were raised at $7.35 per new share. This represents a discount of 12.6% to the Bank of Queensland share price at the close of play on Thursday last week.

Management advised that the institutional entitlement offer was strongly supported with a take‐up rate of ~98%. The placement also received significant demand.

Bank of Queensland will now push ahead with the retail component of its $1.35 billion capital raising.

Why is Bank of Queensland raising funds?

The proceeds from the capital raising with be used to complete the transformative acquisition of ME Bank.

Bank of Queensland’s Managing Director and CEO, George Frazis, commented: “We are very pleased with the strong support we have received from our institutional shareholders and other investors as we take this unique opportunity to create a leading customer‐centric alternative to the big banks.”

“We believe that this transformational merger creates a compelling proposition with significant scale benefits through the alignment of operating models and our technology roadmaps.”

“We are pleased that investors recognise the compelling strategic and financial proposition of this transaction and we are excited to work hard to deliver better outcomes for our customers, employees, the community and our shareholders,” he concluded.

Is the Bank of Queensland share price good value?

Despite hitting a 52-week high today, a couple of brokers still believe the Bank of Queensland share price can go higher.

Analysts at Goldman Sachs have a buy rating and $9.63 price target on its shares. Whereas analysts at Credit Suisse have an outperform rating and $9.50 price target.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro 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.

The post Why the Bank of Queensland (ASX:BOQ) share price is up 10% to a 52-week high appeared first on The Motley Fool Australia.

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!