TL;DR
Executing an SPP involves several crucial steps: deciding on SPP terms, preparing regulatory documents, announcing the SPP, opening it for applications, processing applications, updating the share registry, and announcing the results and closure.
Table of contents
Decide on the terms of the SPP.
The company's board and management determine the size of the offer, the pricing of shares (often at a discount to the current market price), and the eligibility criteria for shareholders.
Prepare regulatory and offer documents.
Develop SPP offer documents that comply with ASX Listing Rules and other regulatory requirements. These documents should detail the purpose of the SPP, the terms of the offer, and instructions for shareholders on how to participate.
Announce the SPP to the market and shareholders.
Officially announce the SPP to the market, providing details of the offer to shareholders through an ASX announcement and direct communication, such as a shareholder letter or email.
Open the SPP for shareholder applications.
Open the SPP for a set period, typically around 3-4 weeks, allowing eligible shareholders to apply for new shares.
Process applications and allocate shares.
As applications are received, process them in accordance with the terms of the SPP. After the SPP closes, allocate shares to participating shareholders based on their applications and the SPP terms.
Update the share registry and issue shares.
Update the company's share registry with the details of the new shareholdings and issue the new shares to participating shareholders. Ensure all changes are accurately recorded.
Announce the results and close the SPP.
Publicly announce the outcome of the SPP, including the amount of capital raised and the number of shares issued, and formally close the SPP.
Executing a share purchase plan is a little more complex than a placement, but it's an inclusive way to raise capital from existing shareholders. Many companies pair shareholder offers like an SPP with a placement to include existing shareholders while accessing new investor capital.