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Here’s why the Aussie Broadband (ASX:ABB) share price is lifting today

The company’s shares are nearing its all-time high…
The post Here’s why the Aussie Broadband (ASX:ABB) share price is lifting today appeared first on The Motley Fool Australia. –

The Aussie Broadband Ltd (ASX: ABB) share price is climbing during Wednesday mid-afternoon. This comes as the broadband company provided an update on its recent Share Purchase Plan (SPP).

At the time of writing, Aussie Broadband shares are up 2.24% to $5.02. It is worth noting that its shares reached an all-time high of $5.22 on Monday, before slightly edging lower.

What did Aussie Broadband announce?

In today’s statement, Aussie Broadband advised it has successfully completed its SPP.

The heavily subscribed SPP received strong support from retail investors, exceeding the original offer to raise $10 million.

Aussie Broadband stated that due to the high demand, it has decided to increase the SPP offer to $20 million. While eligible shareholders will receive a larger portion of shares, the company noted that a significant scale back is required.

As such, a pro rata basis has been applied to each parcel of shares. A minimum allocation of 125 shares will be distributed to shareholders who requested more than $2,500 worth of Aussie Broadband shares. The amount increases up to 1,350 shares for those who applied for more than $30,000 worth of shares in the SPP.

Aussie Broadband managing director Phillip Britt, touched on the closing SPP, commenting:

Despite doubling the size of the SPP raise, we know the level of scale back will be disappointing for many. We hope to repay the faith our shareholders have shown us by continuing to deliver value to them as we execute our strategy.

The newly created shares will be allotted on 8 October, and refunds are expected to be processed around 11 October.

Aussie Broadband share price review

A strong couple of months for the company has led Aussie Broadband shares to accelerate 150% in 2021. In particular, its shares surged at the beginning of August buoyed by a positive trading update.

Since then, Aussie Broadband shares haven’t looked back.

Based on today’s price, Aussie Broadband has a market capitalisation of roughly $1.1 billion, and approximately 218.8 million shares outstanding.

The post Here’s why the Aussie Broadband (ASX:ABB) share price is lifting today appeared first on The Motley Fool Australia.

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More reading

4 ASX shares looking ripe for the picking now

Aussie Broadband (ASX:ABB) share price hits new high, up 27% this month
Aussie Broadband (ASX:ABB) share price lifts on share purchase plan
ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

Aussie Broadband (ASX:ABB) share price edges higher on capital raise update

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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