MarketMentat SPP Spotter
Share Purchase Plans (SPPs) can be a useful way to acquire a position in a company at a discount to the prevailing price.
In order to be entitled to an allocation in an SPP, it is usually necessary to acquire a position in the stock between the announcement of the SPP and the date of implementation. The announcement will normally refer to a ‘record date’ by which those wising to participate must acquire their position.
There is no requirement for the position to be a ‘marketable parcel’, and normally any stockholder of record on the record data is has the same entitlement. Our aim is usually to hold a single share at record date, if possible. This gives us the entitlement to the SPP with minimal risk.
It would be foolhardy to participate in any SPP that comes across the newswire: we ‘run the ruler’ over every company that announces an impending SPP. As a guide, we believe that they must achieve what we refer to as a ‘RantScore’ of 70 or higher – indicating that they have investment merit.
When reading the SPP announcement, you should take careful note of of the SPP size, the record date for entitlement, any specific conditions, and familiarise yourself with our (non-advisory) view on the investment merit of the stock.
Recent SPP Announcements
| ASX Code | Date | Headline | |
|---|---|---|---|
| CTO |  | 12-Mar | Share Purchase Plan – Offer Extended |
| SFR | | 12-Mar | Share Purchase Plan Offer |
| PTR | | 10-Mar | Share Purchase Plan Announcement |
| SBN | | 10-Mar | SBN to undertake SPP |
Other Capital Raising Announcements
| ASX Code | Date | Headline | |
|---|---|---|---|
| ADY | | 11-Mar | $2 MILLION PLACEMENT OF SHARES |
| ARM | | 11-Mar | Placement |
| EKA | | 11-Mar | Capital Raising |
| QMN | | 11-Mar | Share Placement |
| ADU | | 12-Mar | Rights Issue Prospectus |
| FCN | | 12-Mar | Capital Raising Announcement |
| WHE | | 11-Mar | Prospectus for Secondary Trading of the Placement Shares |
| ACE | | 10-Mar | Rights Issue Offer Document |
| EDM | | 10-Mar | Capital Raising Completed |
| ENT | | 09-Mar | $2.8 Million Capital Raising Completed |
| ORE | | 10-Mar | Private Placement of Shares |
| AAM | | 08-Mar | A1 Announces Placement to Raise $4.3 million |
| AEX | | 08-Mar | Capital Raising |
| WHN | | 08-Mar | WHL completes placement and announces option issue |