- Insurance Australia Group (IAG) is looking to raise $750 million as it sets aside $865 million to cover the potential costs of COVID-19
- On Wednesday, the NSW Supreme Court of Appeal told insurers it will have to issue COVID-19 payouts to businesses
- However, the decision can be appealed in High Court and if that goes ahead there won’t be a decision on the payouts until next year
- To be on the safe side, the company is undertaking a $650 million placement and $100 million share purchase plan to cover the potential costs
- Under the raise, IAG will offer new shares for $5.05 each, which represents a 7.5 percent discount to IAG’s last close
- IAG last traded for $5.46 per share on November 18
Insurance Australia Group: Raises $750M for COVID-19 payout
