The Australian Securities and Investments Commission
(ASIC) released the ASIC Corporations (Share
and Interest Purchase Plans) Instrument 2019/547 on 29 August
2019 (Instrument) to replace Class Order [CO
09/425], which was due to expire on 1 October 2019. The Instrument
will continue the effect of the previous class order, enabling
ASX-listed entities to issue shares and interests under share
purchase plans (SPPs) without preparing a
disclosure document, and increases the participation limit for SPP
offers from $15,000 to $30,000 per shareholder in any 12 month
period.
The increased participation limit is intended to assist retail
investors to take part in discounted fundraisings. This will allow
shareholders to increase their uptake of SPP offers and could
reduce dilutive effects to smaller shareholders, who may be able to
take up more than their pro-rata share (which otherwise might apply
in an entitlement offer).
