Volatility means Macquarie’s $1bn raising carries a discount

Macquarie Group is selling shares at a discount of up to 4.5 per cent in its of $1 billion equity raising.

The raising - via a non underwritten institutional placement and share purchase plan - is the first for the financial group under the leadership of Shemara Wikramanayake and indicates it is positioning itself for a pipeline of deals in the renewable energy, technology and infrastructure space.

Working on the raising with Macquarie are JPMorgan and BAML, which have previously teamed up with the Australian bank on its equity raising efforts.

The price paid for the stock is being determined by a book build with the floor price at a 4.5 per cent discount to its last closing share price of $123.51.

When Macquarie raised in 2015, shares were offered at a 3 per cent premium while another recent raise saw shares sold at no discount.

Much of the reason for the steep discount is volatile market conditions.

Macquarie typically does not work on its capital raisings alone, with other banks on the ticket offering validation to the deals.