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Aussie Broadband (ASX:ABB) share price lifts on share purchase plan

The company is gearing up for the second part of its capital raise.
The post Aussie Broadband (ASX:ABB) share price lifts on share purchase plan appeared first on The Motley Fool Australia. –

The Aussie Broadband Ltd (ASX: ABB) share price is moving into positive territory again today. This comes after the broadband provider released its share purchase plan (SPP) offer booklet to investors just before midday.

At the time of writing, Aussie Broadband shares are fetching for $4.78 apiece, up 0.63%. This means its shares have now risen more than 30% in the past month alone.

Share purchase plan details

Investors are sending Aussie Broadband shares higher following the company’s invitation to retail shareholders to participate in its SPP.

Following the successful $114 million institutional placement, Aussie Broadband has extended its offer to eligible shareholders.

Under the SPP, investors can apply to buy a parcel of Aussie Broadband shares for $4.00 per share. The same terms offered in the placement represent a discount of 13.6% on the last closing price on 6 September (when the SPP was announced).

Investors can apply for a minimum application amount of $2,500 with a maximum application amount of $30,000.

Aussie Broadband is seeking to raise a total of $10 million through the SPP. However, this can be scaled back or increased depending on the total value of the applications.

The proceeds raised will be used towards funding a number of initiatives for the company. These include acquisitive growth by mergers and acquisitions, new business product and technology development, and increasing fibre and network assets.

The closing date for the SPP will be 1 October. Allotment of the new shares, as well as trading on the ASX, will be available from 8 October.

Aussie Broadband share price snapshot

Over the course of the last 12 months, Aussie Broadband shares have accelerated to post gains of 150%. Year-to-date has been just as impressive, up by more than 140% after the company revealed a strong fourth-quarter trading update.

Based on today’s price, Aussie Broadband commands a market capitalisation of around $1 billion with approximately 219 million shares outstanding.

The post Aussie Broadband (ASX:ABB) share price lifts on share purchase plan appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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