SRG Global Completes $6 Million Share Purchase Plan Amid Strong Demand
SRG GLOBAL LIMITED (SRG) Share Update September 2024 Monday 16th
SRG Global Completes $6 Million Share Purchase Plan Amid Strong Demand
SRG Global Ltd (ASX: SRG) has announced the successful completion of its Share Purchase Plan (SPP), raising $6 million despite overwhelming demand from shareholders.
Instant Summary:
- SRG Global raised $6 million through the Share Purchase Plan.
- The SPP was oversubscribed, with $53.2 million in valid applications.
- Eligible shareholders could apply for up to $30,000 of new shares at $0.83 each.
- Approximately 7.2 million new shares will be issued.
- New shares will commence trading on the ASX on 18 September 2024.
Successful Share Purchase Plan
SRG Global Ltd (ASX: SRG) has successfully completed its Share Purchase Plan (SPP), which opened on 27 August 2024. The plan allowed eligible shareholders to apply for up to $30,000 of new fully paid ordinary shares at an issue price of $0.83 per share, matching the price of a recently completed placement.
The SPP received strong support from shareholders, with valid applications totaling approximately $53.2 million, significantly exceeding the $6 million target. Due to this high demand, SRG Global scaled back the allotment of new shares on a pro-rata basis to align with the $6 million goal.
Issuance and Trading
Approximately 7.2 million new shares will be issued under the SPP on 17 September 2024. These shares are expected to commence trading on the ASX on 18 September 2024 and will rank equally with existing SRG Global shares. However, the new shares will not be entitled to the dividend for the second half of FY24, with an ex-dividend date of 23 August 2024.
Refunds and Contact Information
Excess application monies resulting from the scale-back will be refunded to applicants without interest, with processing expected to be completed by 20 September 2024. Shareholders with questions related to the SPP can contact SRG Global’s share registry during business hours.
The successful completion of the SPP and the oversubscription indicate strong investor confidence in SRG Global. The capital raised will support the company's ongoing projects and growth initiatives. However, the scale-back and refund process may cause some short-term dissatisfaction among shareholders who applied for more shares than they received.
Investor Reaction:
Analysts are likely to view the oversubscription as a positive sign of investor confidence in SRG Global's future prospects. The strong demand for shares suggests that investors are optimistic about the company's growth potential and strategic direction.
Conclusion:
Investors should keep an eye on SRG Global's upcoming projects and financial performance to gauge the long-term impact of the SPP. The company's ability to effectively utilize the raised capital will be crucial in maintaining and enhancing shareholder value.