What is a Share Purchase Plan (SPP) and how do I participate?

by

Superhero Team

May 25th 2021 3 minute read

A Share Purchase Plan (SPP) is a form of capital raising by a company that offers existing shareholders the opportunity to apply for new shares.

The intention behind an SPP is to allow shareholders to participate in a capital raise by the company, typically at a discount to the last traded price.

To be eligible to participate in an SPP, you must own shares in the company on the record date (the date set by the company).

Participation is optional. Eligible shareholders have the opportunity to buy up to a maximum of $30,000.

If you are eligible and wish to participate in an SPP, you must:

1. Respond to the invitation email Superhero sends to your registered Superhero email on the open date of the SPP. If you did not receive the email, check your spam folder, or contact us through live chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and complete the details before the closing date stipulated in the email. Please note the deadline can change if a company closes their SPP early. We will endeavour to notify clients if a SPP closes early but this may not always be possible due to the short deadlines offered by some companies on occasion.
3. Your application will only proceed if you have sufficient funds in your Superhero Wallet on the closing date. We will restrict the funds for the SPP from your Superhero Wallet on the closing date. We strongly encourage having the funds available when you subscribe.
4. On the share issue date, your funds will be withdrawn from your Superhero Wallet and the SPP shares will be allocated to your Superhero Account.

In some cases, the SPP will be scaled back by the company and you will not receive your full request. In this case, the balance of your funds will be refunded by the company to your Superhero Wallet.

Registry processing times may affect the actual issue date of shares.