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.

Should you invest $1,000 in Aussie Broadband right now?

Before you consider Aussie Broadband, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aussie Broadband wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!