Companies which lifted capped SPPs but still rejected applications


January 6, 2020

This list tracks SPP where the issuer mentioned a cap in the offer document but then expanded it after strong demand but still imposed a scale back.

Ardent Leisure, 2014: $15,000 SPP at $2.41. Directly engaged with company. Stock was trading around $3.11 at the time. They received about $60 million in applications and expanded the $15 million cap to $20 million but still refunded around $40 million. Everyone received a minimum allocation worth $500 and then 12% of their existing holding after that. See announcement.

Asciano, 2010: 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.

Atlas Iron, 2009: there was a $105 million placement and the SPP offer document mentioned an $11.7 million cap plus the formula for any scaleback but after applications worth $29.75 million were received, this was increased to $14.8 million so the scale back was only 50%. Offer expanded by 26.5%.

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.

Collection House, 2013: did a $13 million placement and originally announced $6m cap on SPP but lifted this to $7m although it remained heavily scaled back, without disclosure of the total applications.

Crane Group, 2009: $40 million placement at $7.50 and the company announced individuals were limited to $9000 each and $10 million collectively in the follow-up SPP. However, after it received $27 million in applications, the scale back only reduced this to $22.8 million so that everyone received a minimum 200 shares worth $1500 and were then scaled back by 20% of everything above that amount. The offer was expanded by 128%.

Dyesol, 2013: $15,000 SPP at 16.6c seeking up to $2m. Expanded to $4m, heavily oversubcribed but everyone received 18% of application. The most in the money SPP we've ever encountered.

GUD, 2015: $15,000 SPP at $7.45 after $79m placement. Was initially capped at $15m but after $55m in applications they expanded this to $26 million. Scale back formula was unique but punished the smallest holders. See announcement.

Hills Industries, 2009: aimed to raised $10m but after receiving $33.8 million in applications, expanded this to $16.7 million and applied a 50% scale back based on size of application. See announcement.

Invocare, 2019: announced a $65 million placement at $14 with a capped $20 million SPP to follow and ended up accepting $22.8 million of the $29.7 million in applications so that all applicants could receive $10,000 worth of shares. See announcement.

Kathmandu, 2018: SPP priced at $2.10 when shares were around $2.40. Capped at $8m, accepted $10m and received $NZ14.4m in applications after $NZ 40m institutional placement. Scale back based on share size not application.

QBE Insurance, 2014: $15,000 SPP at $10.10 after placement. Capped at $160m, lifted to $200m but still imposed a heavy scale back.

The Reject Shop, 2013: $15,000 SPP at fixed price of $16.20 after $30 million placement to fund store rollout. Offer document mentioned $10 million cap but after $25.5 million in applications this was expanded by 40% to $14 million.

RCR Tomlinson, 2017: completed a $75m placement then announced $15m cap on SPP but lifted this marginally to $15.6m after receiving $17.6m in applications.

QBE, 2014: SPP was initially capped at $150 million but this was expanded by 33.3% to $200 million after a threatened board tilt. Original placement was $650 million at $10.10.


Treasury Group, 2014: completed a $30 million placement at $10.25 and then announced a $5 million SPP. After receiving $27 million in applications, doubled the SPP to $10 million and all applicants received 37% of their application. See announcement.

Western Areas, 2014: announced a $15 million cap on a 2014 SPP but then ended up lifting it by 18% by accepting $17.7m of $18.8m in application after representations from ASA and an administrative error.