St George bookbuild priced at eight per cent discount

St George Bank yesterday finalised terms for the sale of $767 million in new shares under an institutional book build at $35 each, and a discount of eight per cent to Tuesday's share price. Shares in St George otherwise fell 3.7 per cent in trading yesterday, about double the level of the fall among financial services stocks.

St George Bank on Tuesday announced a decision to scrap one planned capital raising and substitute it with one $300 million larger, following a review of its growth forecasts and capital needs, and against the background of a debate over its capital adequacy.