WAM Capital bookbuild poses questions for ASX

Equity capital markets bankers and stockbrokers will keep a close eye on WAM Capital’s on-market bookbuild scheduled for Monday, which is seeking to raise about $15 million to fund a dividend redistribution plan. WAM Capital principal Geoff Wilson is the first to try out the on-market bookbuild, marketed as a fairer way to allow brokers and high net worth investors get stock in share issues.

But the on-market bookbuild is also likely to raise some discussion among the ECM establishment. Australia’s ECM bankers and lawyers are proud of their history championing equity raising initiatives such as the accelerated rights issues which helped distressed companies raise equity quickly during the credit crisis.