Share purchase plan (SPP)
A share purchase plan (SPP) is a retail capital raise structure allowing existing ASX shareholders to subscribe for new shares up to A$30,000 per holder, typically alongside an institutional placement.
Definition
A share purchase plan (SPP) is a retail capital raise structure allowing existing ASX shareholders to subscribe for new shares up to A$30,000 per holder, typically alongside an institutional placement.
In detail.
SPPs are governed by ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547. They allow listed entities to raise capital from existing retail holders without a prospectus, subject to per-holder and aggregate caps.
The standard structure pairs an SPP with a preceding institutional placement, so retail holders can participate at the same (or a more favourable) price. Pricing is typically the lower of the placement price and a VWAP-based formula at SPP close.
The communications spine is distinct from the placement: a clear, plain-English offer document, a shareholder letter, an FAQ for retail inquiries, and a results-of-raise announcement that breaks out scale-back where applicable.
SPPs that scale back materially require careful communications — the perception of fairness for retail holders matters more than the absolute dollar quantum recovered.
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