ASX shares fell 6 per cent on Friday as investors expressed doubts over the reasons for the sharemarket operator's $553 million capital raising.
The company emerged from a three-day trading halt to reveal it had raised $267 million so far in the discounted share offer to institutional investors. Retail investors can take up the offer from Monday.
The share offer is aimed at raising funds the exchange says are needed to meet new capital rules expected for its clearing house service. Investors are able to buy two shares for every 19 shares they own at the lower price of $30.
There was a slight shortfall in the take-up, however. Large fund managers and other investors took up only 96 per cent of the new shares available. The remaining 4 per cent of the rights entitlements were sold and cleared at $3.70 - with investors signed up to a shortfall arrangement paying $33.70 per new share, the company said.
The company's share price was just below $35 before the trading halt was lifted. The shares closed $2.69 lower to $33.15.
Although analysts expected the shares to trade lower, Deutsche Bank analyst Kieren Chidgey said the fall also showed a lack of confidence among investors over the decision to raise funds - especially at a time when debt was so cheap and readily available to companies.
"People are asking questions. They can't understand the rationale behind the way they've chosen to fund this through equity rather than debt."
He said the decision may lead some to assume the ASX's management wanted to save debt capacity for acquisitions in the future. "This is a potential concern, given you don't know what they're going to buy."
The offer, fully underwritten by UBS, was announced by the operator on Tuesday. It was expected to dilute earnings per share by 5.1 per cent.
The company said the money raised would go to ASX Clear, the clearing facility for all futures and options, and to paying off $250 million in debt from a subsidiary, ASX Clearing Corporation.
ASX chief Elmer Funke Kupper said the funds would help it compete with foreign clearing houses.
"If you want to pay on the global stage, you need to adhere to the highest available standards," he said.
The company also issued an update on its performance, warning it would pay a final dividend of 81¢, about 12 per cent below analyst forecasts. Its full-year profit would be about $346 million.
ASX Ltd hopes to raise a further $286 million in the retail share offer.