ASX Ltd to raise $553 million capital

ASX Ltd to raise $553 million capitalASX Ltd is aiming to raise about $553 million in capital following the new strict rules for the company's new clearing house service.

The company has said that its profits are expected to slightly below analysts' estimates. The leading share and derivatives exchange group halted its share trading this morning and launched two-for-19 pro rata accelerated renounceable entitlement offer at $30 a share. The company has appointed UBS for the prices.

The price of $30 a share is about 16.3 per cent lower than previous price for ASX shares at $35.84. The share prices have been fallen from $39.77 on May 22, which is its highest level in 12 months. The company said that it would use the funds raised to infuse $200m of additional equity into its ASX Clear (Futures) operation and replace an existing $250m non-recourse debt facility for ASX Clearing Corporation with equity.

The company said in a statement that the remaining $103 million would be used to cover the costs of the issue fund unspecified current and future growth initiatives as well as for supporting other subsidiaries of the ASX.

"Investment in ASX's clearing houses will provide Australia's financial markets with a robust infrastructure and strengthen the position of ASX to compete on a global basis. Furthermore, the repayment of the debt facility will eliminate any potential refinancing risk," ASX said.