ARB Sets DRP and BSP Pricing at AUD 39.70 with 2% Discount for AUD 0.50 Dividend
ARB Corporation Limited has updated its dividend announcement, revealing pricing details for its Dividend Reinvestment Plan and Bonus Security Plan tied to a special fully franked AUD 0.50 dividend for FY2025.
- Special fully franked dividend of AUD 0.50 per share
- Dividend record date set for 25 August 2025
- Payment scheduled for 11 September 2025
- Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) offer 2% discount
- New securities issued under DRP and BSP rank pari passu from issue date
Dividend Update and Context
ARB Corporation Limited has provided an update to its previous dividend announcement, detailing the pricing mechanisms for its Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) associated with a special dividend. This dividend, fully franked at 100%, amounts to AUD 0.50 per ordinary share and relates to the financial year ending 30 June 2025.
The record date for shareholders to be eligible for this dividend is 25 August 2025, with the payment date scheduled for 11 September 2025. This timing aligns with ARB’s typical dividend distribution cycle, reflecting the company’s ongoing commitment to returning value to shareholders.
Details of DRP and BSP Pricing
Both the DRP and BSP are fully available for participation with no minimum or maximum limits imposed on shareholders. The reinvestment price for shares acquired under these plans is set at AUD 39.6978, calculated as the volume weighted average market price over the five business days following the ex-dividend date, adjusted for a 2% discount. This discount is designed to incentivize shareholders to reinvest dividends back into the company’s equity, potentially supporting share price stability and capital growth.
New shares issued through the DRP and BSP will rank pari passu with existing shares from the issue date, ensuring equal rights and entitlements for reinvested shareholders. The company has confirmed that no additional approvals are required for these dividend distributions, streamlining the process for investors.
Implications for Investors and Market
For investors, the fully franked nature of the dividend is particularly attractive, as it provides a tax credit reflecting the corporate tax already paid by ARB. The availability of both DRP and BSP options with a discount may encourage a higher uptake of reinvestment, which could influence the company’s capital structure and liquidity.
Market watchers will be keen to observe the level of participation in these plans, as it can signal shareholder confidence and impact ARB’s share price dynamics in the weeks following the dividend payment. The company’s transparent approach to pricing and clear communication of terms supports informed decision-making among its investor base.
Bottom Line?
ARB’s clear dividend reinvestment terms set the stage for shareholder engagement and potential capital growth ahead.
Questions in the middle?
- What proportion of shareholders will opt into the DRP or BSP versus taking cash dividends?
- How might the 2% discount on reinvestment shares affect ARB’s share price post-dividend?
- Will ARB maintain or adjust its dividend policy in response to market conditions in the coming year?