- An SPP page on your website draws in potential investors and engages existing shareholders.
- It gives details on the plan and identifies who are eligible for it.
- It makes your company stand out with your offer.
One way an ASX-listed company raises additional capital is by offering its shareholders the opportunity to purchase new shares through a share purchase plan (SPP). To make the offer attractive, the price of the new shares is often set at a discount to the prevailing market trading price.
An SPP can be a winning option for businesses looking to invite investment and demonstrate their commitment to overall growth. However, it's important to have a clear and comprehensive page on your website that explains the plan and its benefits for current shareholders.
Explore the reasons why an SPP page on your website is crucial for both your company and your stakeholders.
1. Draws in potential investors
Primarily, creating an SPP page helps bring in potential stockholders to your company. Investors want to know that your company is financially sound and has a clear plan for progress. By explaining your SPP and the prospective benefits it offers, you demonstrate that your business is committed to its long-term success and has a strong financial position. This builds shareholder confidence and increases the likelihood of investment.
2. Engages existing shareholders
An SPP page assists in keeping current stockholders up-to-date and engaged. By providing regular updates and information about the plan, shareholders can make informed decisions about their investment and stay abreast on your business milestones. This develops trust and loyalty among investors, as they feel connected to your organisation and its progress.
An SPP page draws in potential investors.
3. Gives details on the SPP
Organising an SPP page allows you to provide guidance outlining the duration of the plan, the available bid amounts, and the designated use of the raised capital. Additionally, the guidance will specify the discounted price at which new shares will be offered to shareholders. Investors can usually purchase the new shares without incurring any brokerage or other fees. You could post key dates here as well as the SPP booklet, which could be easily downloaded from this page.
4. Identifies who are eligible for the SPP
An SPP page lets you indicate those who can participate in the plan. For instance, investors must be registered shareholders of your company by a specified date, as outlined in the offer documents. You can add the maximum amount allocated for stockholders to bid for, in compliance with regulatory requirements. You can also mention here how investors can apply for shares under the SPP.
5. Makes your company stand out
What's more, presenting an SPP page enables your company to rise above the competition. Many businesses offer similar benefits packages, but by offering an SPP, you set yourself apart as a company that values shareholder engagement and growth. This can be a powerful tool for attracting new investors and retaining current ones.
An SPP page gives details on the plan.
In a nutshell
Featuring an SPP page on your website is an essential component of any productive investor relations program. It draws in potential investors, engages existing shareholders, gives details on the plan, identifies who are eligible for it and makes your company stand out. Taking the time to create a clear and informative SPP page establishes your commitment to success.
Leave it to the pros
Need a hand with an SPP page on your investor website? We’re here to assist with your online communication needs, as we’ve served many of your ASX-listed peers here.
Get in touch with us through +61 2 8705 5444 or clientrelations@irmau.com today!
Online Investor Engagement Specialists
