How do Capital Raisings work?

Capital Raisings are financial transactions that companies make to raise funds. Capital Raisings can take many forms, including listed and unlisted hybrids and bonds, initial public offerings (IPOs) and unlisted funds.

These are used to create opportunities for companies to secure the necessary capital for growth, operations or to reduce debt. If the use of the capital adds value, investors may benefit.

What we offer

We provide access to exclusive opportunities in equity and debt across listed and unlisted markets. Capital Raisings can offer attractive returns, especially when funds are used strategically to enhance a company’s value.

Benefit from the institutional weight of NAB to gain early access and allocations for a diverse range of new issues. 

Benefits

Participate in emerging investment opportunities, from an Initial Public Offering (IPO) to listed and unlisted hybrids and bonds, as well as unlisted funds.

Access to new opportunities

Capital Raisings lets you invest in companies with growth potential, including start-ups and established firms. This allows you to diversify and enter new markets.

Early entry

Investors who participate in early raisings often secure positions at inception stage, which may lead to early share price appreciation as the company grows.

Diversify your portfolio

Capital Raisings allow investors to diversify their portfolios by adding different asset classes, industries or sectors, spreading risk and enhancing the potential for returns

Considerations

Whilst Capital Raisings can offer opportunities for investors to participate in the growth of promising companies, they do carry risk. It’s important to understand these risks before investing.

Company-specific risk

The performance of the investment is tied to the success of the company. If the company fails to execute strategies or faces unexpected challenges, it can impact the value of the investment. 

Liquidity risk

Newly-issued securities may have limited liquidity, which makes it difficult to buy or sell shares quickly, especially if the company is not publicly traded.

Allocation dilution

Issuances that are oversubscribed can result in allocations being scaled back, meaning you may not receive the amount you applied for.  

Capital Raisings profile

Eligibility requirements

  • You must be a resident in Australia
  • Capital Raisings are only available to wholesale investors for the purposes of the Corporations Act 2001
  • Minimum investment is $50,000 or more (depending on issuance).

Investment type

  • Listed and unlisted hybrids and bonds
  • Initial Public Offerings (IPOs)
  • Unlisted funds

Investment horizon

  • The investment term is varied and as such can be short, medium or long term depending on issuance.

Return profile

  • Income
  • Capital growth

To further explore Capital Raisings, you can contact your investment specialist or call our Investor Desk.

Understanding the basics of Capital Raisings

Entry to Capital Raisings is a chance to get in on the ground floor of an investment opportunity.

It can be a profitable way to experience capital growth, but like any investment there are risks, and understanding what the money is to be used for and any obstacles to success is vital.

Explore private investment insights

Discover more about Capital Raisings from our experts.

Contact us

Talk to a specialist

To explore investment opportunities, contact your investment specialist or call our Investor Desk.

Call us on 1300 683 106

 

Email a specialist

Send us an email enquiry and one of our team members will get back to you.

Email us

For insights and research

Discover the latest thinking on investment insights, strategies and market commentary.

Explore more, opens in new window

Terms and Conditions

The information on this website is general in nature and based on information available at the time of publishing, information which we believe is correct and any forecasts, conclusions or opinions are reasonably held or made as at the time of publishing. The information does not constitute financial product or investment advice. Past performance is not necessarily indicative of future results. No warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 or any of its related entities accept liability to any person for loss or damage arising from the use of this information.

You should consider the relevant Product Disclosure Statement and Financial Services Guide (available on request) before deciding whether to acquire, or to continue to hold, any of our products. Target Market Determinations for these products are available at nab.com.au/TMD and jbwere.com.au/other/resources, opens in new window. Fees and charges are payable. Terms and conditions apply and are available on request from NAB. Our credit products are subject to eligibility and lending criteria.

All products and services mentioned on this website are issued by National Australia Bank Limited ABN 12 004 044 937, Australian Credit Licence and AFSL No. 230686 (NAB), except wealth advice services, which are provided by JBWere Limited ABN 68 137 978 360 AFSL No. 341162 (JBWere), and nabtrade, which is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities). JBWere and WealthHub Securities are wholly owned subsidiaries of NAB.

WealthHub Securities’ and JBWere’s obligations do not represent deposits or other liabilities of NAB. NAB does not guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. You may be exposed to investment risk, including loss of income and principal invested.

Information correct as at January 2024.

©2024 NAB Private Wealth is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. ©2024 JBWere Limited ABN 68 137 978 360 AFSL No. 341162. ©2024 WealthHub Securities Limited ABN 83 089 718 249 AFSL 230704.