Companies which refused to expand capped SPPs

Atlas Arteria, 2020: $420 million placement at $6.20 followed by a $30,000 SPP capped at $75 million. Was only marginally in the money at the close but still attracted $180 million in applications and the board failed to lift the cap. The scale back was based on size of holding with a minimum allocation to all of $1000. See announcement.

August 11: Audinate (AD8): $40m raising comprising a $28m placement at $5.15 and then a $12m SPP at the same price or a 2% discount to VWAP which ended up being priced at $5.12. No disclosure of total subscriptions or participation data in the SPP outcome announcement. All we know is that the $12m cap was retained and those with less than 50 shares received nothing but everyone else got 61% of their existing holding.

AWE, 2017: $15,000 SPP at 50c closing on December 14. 7,669 holders so maximum application $265m chasing $10m. Received $76m in applications and scale back formula involved everyone getting at least $500 worth. 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.

Breville, 2020: $30,000 SPP at $17 after $94 million placement and stuck with its $10 million cap despite receiving $54.7 million in applications. See outcome 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.

CFS Retail, 2014: $15,000 SPP at $1.782 after placement. Scaled back everyone to about $2100. The $15 million SPP received $73 million in applications and there was no expansion in the cap. See announcement.

Corporate Travel Management, January 2022 (CTD): $15,000 SPP at $21 or the 5 day VWAP with no discount. Capped at $25 million. This followed a $75 million placement to fund Helloworld Corporate acquisition. Good transparency in the outcome announcement which disclosed that 4,487 of the 15,539 (29%) eligible shareholders participated with the average application being $10,756. Disappointing they didn't lift the $25 million cap and refunded $23.6 million based on pro rata of existing holding but anyone with less than 5 shares got zeroed.


Credit Corp, 2019: $15,000 SPP at $20.45 placement price or a 2.5% discount to VWAP. Closed well in the money. Investors were scaled back to 39% or 288 new shares based on size of application. See announcement.

Domino's Pizza, 2022 (DMP): $150m placement at floor price of $65.05 with a $15m following SPP. Placement ended up being priced at $66.38, matching the previous close, and SPP offered a 2% discount to VWAP. With 20,638 eligible shareholders, the theoretical maximum for applications was $619 million but only $18.93 million came through the door from 1,126 applicants and still they scaled it back to the capped amount of $15 million. Wrote to the company requesting transparency and an expanded cap. The participation data was good but the scale back was pathetic for a company capitalised at $5.85 billion. Final VWAP price was $64.54, a 2.77% of $1.84 discount to the placement price.

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.

GUD Holdings: $15,000 SPP at $8.30 or a 2.5% discount to market. Scaled everyone back by 55%. This followed a $40 million institutional placement and the offer document flagged a $15 million cap which was maintained. See scale back formula.

Megaport, 2019: completed a $50m placement at $4 and then received $47.6 million worth of applications for the subsequent SPP but stuck with the $10 million cap. See announcement. Not clear on the scale back formula.

NAB: stuck with a $750 million cap on its SPP in 2009 despite receiving $2.6 billion in applications. See this announcement promising all applicants at least $500 worth of shares and then this subsequent letter from chairman Michael Chaney.

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.

QBE Insurance, 2009: The $100 million offer at $5000 a pop received $226 million in applications and QBE came up with a unique scale back formula whilst sticking with the $100m cap.

Seek, 2009: $5000 SPP at $2.60 following a $100 million placement which included $35 million to the Bassat founders and the Packer interests. There was no cap in the original announcement but $15 million appeared in the offer document. Received $20.4 million in applications and the scale back was based on the size of your holding.

Sezzle, 2020: After raising $79.1 million in a placement at $5.30, Sezzle announced a $7.2 million SPP which was then remarkably swamped by $78.2 billion worth of applications. Sadly, the cap wasn't lifted so $71 million or 92% of all application monies were refunded.

Silex Systems, 2021: Announced a $33m placement at $1.27 million which was followed by a $7m SPP which was in the money ahead of the close. It attracted $18 million from over 1000 applicants and the scale back to $7 million involved a flat $2000 allocation to a majority of applicants and a pro rata allocation above that. No disclosure as to what size of shareholding received more than $2000 worth of stock or what size received the full $30,000.


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.

SRG Group: $15,000 SPP at $1.60 after acquisition. $9.8m applied for $4m with no increase in the cap. See announcement on scale back based on size of holding.

Villa World, 2013: $15,000 SPP at $1.60. Received $9.8 million in applications but decided to stick with $5m cap with everyone receiving 49% of what they applied for. See announcement.

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.

Western Areas, 2013: $15,000 SPP at $3.80. Scale back based on size of holding. See scale back announcement as held the line with $15 million cap in offer document after receiving $26 million in applications.

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