Companies which scaled back SPPs based on size of application
January 11, 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.
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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