The Magellan Financial Group Ltd (ASX: MFG) share price is skyrocketing as investors show their support for the proposed merger with Barrenjoey Capital Partners.

Magellan announced today that it had completed a $130 million institutional capital raise to help fund the merger, which was announced yesterday.

Magellan shares came out of a trading halt this morning and are currently the biggest risers on the S&P/ASX 200 Index (ASX: XJO).

The Magellan share price opened at $9.91 on Tuesday, up 17%, and rose to an intraday high of $11.11, up 31%.

Magellan shares are now $10.52, up 24.4%.

On Friday, the Magellan share price closed at $8.46 prior to the merger news on Monday.

The investment manager said the institutional placement…