National Australia Bank shares have dropped only a little on their return to the market, a sign that investors are impressed with the progress of its massive capital raising.
NAB has completed the institutional component of its $5.5 billion capital raising, with a 97 per cent take-up rate among eligible shareholders.
NAB shares resumed trading shortly after the market opened on Tuesday and they closed down 0.47 per cent at $34.54.
The stock rallied as high as $34.82, and only fell as low as $34.10.
The broader market, including the other big four banks, finished up higher.
Quay Equities head of trading Tristan K'nell said it was a positive return to the stock market for NAB.
"I see some value in NAB taking a proactive approach to shoring up its balance sheet ahead of new regulatory requirements while also making moves to demerge from its UK assets which has been a heavy burden to it in recent times," he said.
Mr K'nell said NAB's return to the share market inflated total market trading volumes on a day where most traders would be cautious ahead of the release of the federal budget.
After raising $2.7 billion from institutional shareholders NAB will now move to the second phase, a retail entitlement offer that is expected to raise approximately $2.8 billion.
Eligible retail shareholders will be able to get two new shares for every 25 existing NAB ordinary shares that they currently hold at the offer price of $28.50 by June 1.
Paterson's Securities said the capital raising is making good progress.
"The Institutional Entitlement Offer saw a strong take-up by eligible institutional shareholders, with the subsequent institutional shortfall book-build completed on 11 May 2015," it said.
"NAB stated that the latter book-build was well supported by shareholders and new investors."
NAB shares had been in a trading halt since Thursday when the bank announced the capital raising, which will beef up its balance sheet and allow it to push ahead with the demerger and public float of its troubled subsidiary Clydesdale Bank subsidiary in the UK.
UK regulators have told NAB it needs to inject another STG1.7 billion ($A3.25 billion) into Clydesdale, to cover any future potential losses linked to past problems with the lender, before an initial public offering can go ahead.
The $5.5 billion raising is the biggest ever seen in Australia, easily topping the $4.4 billion raised by Rio Tinto in 2009.
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