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.