Companies which scaled back SPPs based on size of application
December 22, 2024
Here is a list of some of the companies which have scaled back SPPs based on the size of a shareholder's application.
Asciano, 2009: The SPP was pitched at $100 million after a $1.58 billion institutional placement and circa $800 million entitlement offer, but after applications worth $290 million from 31,000 holders, this SPP cap was slightly increased by 1.5% to $101.5 million so all applicants could receive 35% of their application. See announcement.
Boart Longyear, 2009: $15,000 SPPs at 27c. Company received $US118m in applications from 10,000 shareholders but scaled this back to $US75 million with everyone getting around 65% of their application. See announcement.
Capitol Health, 2020: $30,000 SPP at 16c after $30m placement and stuck rigidly to its $10 million cap, scaling everyone back to a maximum of around $16,300, although it wasn't clear in this outcome announcement.
Cedar Woods, 2014: $15,000 SPP at $6.80. Scaled back by two thirds after received $15m in applications. Stuck with $5m cap and scaled back based on size of applications. See announcement.
Credit Corp, 2019: announced a $10 million cap on its SPP after doing a $125 million placement at $20.45 and then lifted the SPP to $15 million but still only accepted an 39% of each shareholder's $15,000 application. See scale back announcement.
Fletcher Building, 2009: The $NZ100 million SPP at $4.15 followed a $NZ405 million placement and was scaled back with applicants receiving 56.56% if they applied for the maximum of $A9000. See scale back announcement.
Gindalbie Metals, 2010: $10,000 SPP at 93c, with most applicants scaled back to $8700. Initially announced capital raising of up to $206 million with the SPP capped at $20 million. Received $26 million in applications and scaled everyone by about 25%. See conclusion announcement.
Pinnacle Investment Management, 2018: announced a $10 million cap and stuck with it despite receiving $22 million in applications. All applicants received 56% of their application. See announcement.
Pinnacle (PNI), December 2024: $400m placement at $20.30 followed by a $25m SPP at $20.30 with no VWAP alternative pricing. It attracted $75.7 million in applications. The board used its discretion to more than double the cap to $50.5 million, reducing the scale back to $25.2 million or just under one-third of total applications. No disclosure of the scale back formula, but it was based on size of application with everyone getting two thirds of what they asked for.
Retail Food Group, 2014: $15,000 SPP at $4.80. Everyone scaled back to 47% of application but they refused to lift the $15m cap. See announcement.
Salt Lake Potash (SO4), 2021: completed a $52m placement at 40c, a 21% discount to the previous close, and followed up with a $30,000 SPP capped at $5 million with no VWAP alternative to the 40c fixed price. End up receiving $10 million worth of applications so the $5 million cap was lifted to $8 million and the scale back was based on 83% of your application.
Spirit Telecom (STI), 2020: $18.2 million placement at 32c to help fund 3 acquisitions followed by a $5 million SPP with no VWAP pricing alternative. Was flooded with $16.7 million in applications and board refunded $11.7 million sticking with the original $5 million cap but scaled back based on size of application rather than size of holding.
Strike Energy, (STX), 2021: Launched an $80 million capital raising at a 20% discount of 30c to advance its WA gas project, comprising a $75 million placement and a $5 million SPP, which didn't have a VWAP alternative. Closed it early on May 3 after $30 million came through the door in 7 days from 1500 applicants and then they doubled it to $10 million with a scale back model based on size of application so those who applied for $30,000 got a $10,000 allocation.
Syrah Resources (SYR), 2021: A $56 million placement at 90c followed by $30,000 SPP capped at $12 million. With the stock at $1.20, not surprising that $63.7 million came through the door. They increased the cap to $18 million and all applicants received 28.26% of what they applied for.
Treasury Group, 2015: $5 million SPP at $10.25 after placement. $27m in applications so expanded to $10m with everyone getting 37% of application. See announcement.
Uniti Group (UWL), 2021: purchased some assets off Telstra funded by a $50 million placement at $1.50 (2c premium to the previous close of $1.48), followed by a $10 million SPP which finished more than 7 times over-subscribed so the cap was lifted to $20 million with the scale back based on size of application with everyone receiving 28.3% of what they applied for.
Webjet, 2013: $15,000 SPP at $3.60 after $25m placement to fund acquisition. Capped at $5m and received $26m in applications. Investors were scaled back to 19% of application. See scale back announcement.
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