Share Purchase Plans

Share Purchase Plans (SPPs) are a beneficial strategy for companies as they provide an efficient way to raise capital directly from shareholders, strengthen investor relations, and potentially enhance shareholder equity without the need for costly intermediaries

Share Purchase Plans

Reach Markets specialises in running Share Purchase Plans (SPPs). SPPs can be a highly effective method of raising capital quickly. When used in tandem with a placement, this activity can allow all shareholders to participate and larger shareholders to not dilute.

Our SPP service is designed to ensure that the vision of a company and its plans for a capital raise are clearly articulated in every medium of communication. We combine the use of physical mail-outs, landing pages, online investor briefings and an active phone campaigns. We also use the opportunity to greatly increase liquidity around your stock, creating the opportunity to clearly articulate your company’s plans and convince new investors to invest.

We run an integrated process with up to 15 people working on your campaign – IR, Call Centre, digital marketing, advisers, corporate finance and compliance.

Some information on share purchase plans

Share Purchase Plans (SPPs) offer existing shareholders of a company the opportunity to purchase additional shares directly from the company at a discounted price. SPPs are typically structured to engage and reward loyal shareholders while providing them a chance to increase their ownership in the company. The terms of an SPP, such as the offer price and discount, are determined by the company and communicated to eligible shareholders.

When an SPP is announced, eligible shareholders can participate by subscribing for additional shares at the predetermined discounted price. The number of shares that shareholders can purchase is usually subject to a cap or pro-rata allocation to ensure fairness and manage the overall demand. Shareholders may choose to subscribe for all or a portion of their entitlement, depending on their preference and available funds.

The subscription period for an SPP is typically limited, ranging from a few weeks to a couple of months. During this period, shareholders need to submit their applications and payments to the company. Once the subscription period ends, the company determines the final allocation of shares based on the demand and available shares. Shareholders who have successfully subscribed will receive the allocated shares and see an increase in their ownership in the company.

Overall, SPPs provide an opportunity for existing shareholders to increase their stake in a company at a discounted price, reinforcing their commitment and aligning their interests with the company’s growth. It’s a win-win situation where companies can engage their shareholders and raise capital, while shareholders can benefit from potential capital appreciation and ongoing participation in the company’s success.

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