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Is Bank of Queensland still cheap?

Team Veye | 29 Nov 2019 ASX - BOQ
Is Bank of Queensland still cheap?

Bank of Queensland (ASX: BOQ)

BOQ Successfully Completes $250 Million Institutional Placement

Bank of Queensland (ASX: BOQ) (BOQ) on 26 November 2019 announced the successful completion of the fully underwritten $250 million institutional share placement (Placement)

(Chart source: TradingView)

The Placement, which was conducted by bookbuild, will result in the issue of approximately 32.1 million new fully paid ordinary shares in BOQ (New Shares) at a price of $7.78 per New Share. This represents the top of the bookbuild price range.

New Shares under the Placement are expected to settle on 28 November 2019. New Shares are expected to be issued and commence trading on the ASX on 29 November 2019.

As announced to the market on 25 November 2019, BOQ will also undertake a share purchase plan (SPP). An SPP booklet with further details is expected to be sent to Eligible Shareholders on or around 3 December 2019. (Data Source – Company Reports)

 

Veye’s Take

BOQ has received strong support from investors. The funds raised will further increase BOQ’s buffer above APRA’s benchmark and provide BOQ with additional capacity to support the implementation of its strategic transformation. Insiders have bought more shares than they have sold in the past 3 months. BOQ’s dividend is in the top 25% of dividend payers in the Australian market.  The stock has corrected recently and has landed at base support though some more correction is not ruled out. It is now trading close to its intrinsic value. We maintain a “Hold” recommendation on “Bank of Queensland Ltd” at the current price of $7.87

Disclaimer

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