Fat Prophets Global Contrarian Fund Ltd announces a special fully franked dividend of AUD 0.05 per share, coupled with a dividend reinvestment plan offering a 2.5% discount. Key dates for investors are set for late August and September 2025.
- Special fully franked dividend of AUD 0.05 per share
- Ex-date on 27 August 2025, payment on 25 September 2025
- Dividend Reinvestment Plan (DRP) available with 2.5% discount
- DRP securities to be newly issued and rank pari passu
- No minimum or maximum participation limits for DRP
Special Dividend Announcement
Fat Prophets Global Contrarian Fund Ltd (ASX, FPC) has declared a special dividend of AUD 0.05 per ordinary fully paid share. This dividend is fully franked, reflecting the company’s confidence in its current earnings and tax position. The ex-dividend date is set for 27 August 2025, with the record date following on 28 August 2025, and payment scheduled for 25 September 2025.
Dividend Reinvestment Plan Details
Alongside the cash dividend, FPC is offering shareholders the option to participate in a Dividend Reinvestment Plan (DRP). This plan allows investors to reinvest their dividends into new shares at a 2.5% discount to the volume weighted average market price over a three-day trading period commencing 28 August 2025. The new shares issued under the DRP will rank equally with existing shares from the date of issue, ensuring no dilution of shareholder rights.
Implications for Investors
The DRP’s absence of minimum or maximum participation thresholds provides flexibility for shareholders of all sizes to engage with the plan. Those who do not elect to participate will receive their dividend in cash by default. The fully franked nature of the dividend is particularly attractive for Australian investors, as it includes a 30% corporate tax credit, potentially enhancing after-tax returns.
Strategic Context
This special dividend signals FPC’s robust financial health and commitment to returning value to shareholders. The timing and structure of the dividend and DRP may also reflect strategic capital management, balancing cash returns with reinvestment opportunities. Investors will be watching closely to see how participation in the DRP affects share liquidity and the fund’s capital base in the coming months.
Bottom Line?
FPC’s special dividend and DRP offer a compelling choice for investors balancing income and growth, setting the stage for shareholder engagement ahead.
Questions in the middle?
- What level of shareholder participation will the DRP attract?
- How will the issuance of new shares under the DRP impact FPC’s share price and liquidity?
- Does this special dividend signal a shift in FPC’s capital allocation strategy going forward?