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.
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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.
