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

The company is gearing up for the second part of its capital raise.

| More on:
a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Capital Raising

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Capital Raising

Up 102% in 2024, here's why this ASX All Ords stock is now frozen

Seize the day. This company is ready to cash in on its renewed image.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 battery materials stock crashing 20% today?

Its shares are now down by 67% since this time last year.

Read more »

A man with a heavy facial hair growth and a comical look on his face holds his hands in a 'time out' gesture.
Energy Shares

Up 90% in a year, why is this ASX 300 uranium stock suddenly halted?

Here's why this high-flying stock is out of action today.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Mergers & Acquisitions

Why are Metcash shares tumbling today?

This wholesaler has just received a $300 million cash injection.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Materials Shares

Why is the Arafura share price sinking 17% today?

It has been a tough session for this rare earths stock. But why?

Read more »

Two happy pharmacists standing together in a pharmacy.
Capital Raising

Own Sigma shares? Everything you need to know about the 'transformational' $8.8b merger with Chemist Warehouse

Here's what you need to know about this mega merger.

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Energy Shares

Why is the Boss Energy share price sinking 5% today?

This uranium share is raising funds. But why?

Read more »

a man in a suit holds up a hand and a stop sign at a roadblock positioned over a bitumen road .
Capital Raising

Why are Boss Energy shares in a trading halt?

This uranium share is raising funds. But why?

Read more »