bank raises a$1.1 bln

http://www.bloomberg.com/apps/news?pid=10000081&sid=aV5ZGSG3cYDk&refer=australia

Macquarie Bank Raises A$1.1 Bln in Dyno Share Offer (Update1)

April 6 (Bloomberg) -- Macquarie Bank Ltd., Australia's biggest investment bank, and its partners raised A$1.1 billion ($800 million) in an initial share sale of explosives maker Dyno Nobel Ltd., after taking advantage of demand to increase the offer price.

Macquarie sold stock to institutions at A$2.37 each, more than the A$2.27 initially sought, Sydney-based Dyno Nobel said today. The bank sold a 57 percent stake in Dyno Nobel, which will have a market value of A$1.9 billion when the shares begin trading tomorrow.

Sales of explosives are soaring as miners such as BHP Billiton and Rio Tinto increase production to meet China's appetite for raw materials. The IPO, the biggest in Australia so far this year, also tapped demand for new stock as the economy enjoys its 15th year of growth, helping push the benchmark stock index to a record high yesterday.

``For those resources companies to expand production, explosives will be one of the things they have to buy,'' said Albert Hung, who helps manage the equivalent of $130 million at Alleron Investment Management. ``Against that background an investor would certainly get a bullish feeling about its prospects and that is why there is strong demand out there.''

Macquarie and a group of unidentified investors acquired Dyno Nobel Holding ASA for $1.7 billion in September, before selling the company's European, African and Latin American operations to Melbourne-based Orica Ltd. for $685 million.

Institutional investors received about 64 percent of the stock, split equally between domestic and overseas investors, Dyno Nobel said in the statement. Individual investors were ``substantially scaled back given the strong level of demand,'' the company said.

The IPO was arranged by Macquarie and Credit Suisse Group.

Some of the funds raised will be used to pay back current shareholders and repay debt, Dyno Nobel said. Existing shareholders and management will hold the remainder of the stock.