Shares in Bendigo and Adelaide Bank have opened around three per cent lower after the company carried out a $230 million capital raising to fund its purchase of the Victorian government's Rural Finance Corporation.
Bendigo shares were down 35 cents to $11.04 at 1015 AEST on Tuesday after emerging from a trading halt.
The shares were placed in a trading halt on Monday while Bendigo completed the capital raising to help fund its $1.78 billion acquisition.
Institutional investors paid $10.85 per share through the placement plan to raise $230 million.
The bank will now launch a $50 million share purchase plan for ordinary shareholders.
Chief executive Mike Hirst said the company was pleased with the level of support.
"The successful placement demonstrates investors' support for BEN and its acquisition of Rural Finance which is such a strong strategic fit with our business model," Mr Hirst said in a statement on Tuesday.
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