CBA picks up $865 million in Share Purchase Plan

Commonwealth Bank announced yesterday that applications for $865 million of new fully paid ordinary shares were received in response to an offer launched in February, inviting shareholders to apply for up to $10,000 of shares.

The Share Purchase Plan offer was free of brokerage or fees and the price was set at the lower of $26 or the average price of CBA shares over the last five days of the offer.

The bank said yesterday that the issue price would be $26 a share and that all applications will be met in full. Shares will be allotted on March 23.

The issue of shares will add about 30 basis points to CBA's Tier 1 capital ratio.