Why Did Platinum Capital Adjust Its DRP Price Ahead of September Dividend?
Platinum Capital Limited has updated the price for its Dividend Reinvestment Plan (DRP) ahead of its fully franked dividend payment for the six months ending June 2025. The dividend of 3 cents per share will be paid on September 22, with new shares issued under the DRP at a revised price.
- Dividend of AUD 0.03 per share fully franked at 30%
- DRP price updated to AUD 1.47089 with no discount
- Dividend payable on 22 September 2025, record date 1 September
- New shares issued under DRP rank pari passu from issue date
- Currency options include AUD and NZD for eligible shareholders
Dividend Update and DRP Revision
Platinum Capital Limited (ASX – PMC) has issued an update to its previously announced dividend reinvestment plan (DRP) price, ahead of the upcoming fully franked dividend payment for the half-year period ending 30 June 2025. The company confirmed a dividend of 3 cents per ordinary fully paid share, fully franked at the corporate tax rate of 30%, payable on 22 September 2025.
The update, released on 5 September 2025, revises the DRP price to AUD 1.47089 per share. This price is calculated as the volume-weighted average price of PMC shares over the five trading days following the ex-dividend date, which was 29 August 2025. Notably, the DRP carries no discount, meaning shareholders reinvesting dividends will acquire new shares at market-aligned prices.
Implications for Shareholders and Capital Structure
Shareholders who elect to participate in the DRP will receive new shares issued by the company, which rank equally with existing shares from the date of issue. The plan is open to shareholders registered in Australia and New Zealand, with New Zealand investors able to receive dividends in New Zealand dollars, converted at spot rates. The absence of a discount on the DRP price suggests a conservative approach by Platinum Capital, aiming to balance shareholder value with capital management.
The record date for dividend eligibility is 1 September 2025, and shareholders who do not opt into the DRP will receive their dividend payments in cash. The company has confirmed that no external approvals are required for the dividend payment, streamlining the process for investors.
Context and Market Considerations
This update follows the initial dividend announcement made on 20 August 2025, reflecting a refinement in the DRP pricing methodology. For investors, the fully franked nature of the dividend enhances its attractiveness by providing tax credits, which can be particularly beneficial for Australian resident shareholders.
From a market perspective, the issuance of new shares under the DRP will modestly increase the company’s share capital, potentially diluting existing holdings depending on participation rates. However, the alignment of the DRP price with recent market prices mitigates the risk of significant dilution or shareholder value erosion.
Overall, Platinum Capital’s update signals a steady approach to shareholder returns and capital management in a stable market environment.
Bottom Line?
Platinum Capital’s DRP price update sets the stage for measured shareholder participation and capital growth following the September dividend.
Questions in the middle?
- What level of shareholder participation in the DRP can be expected given the no-discount pricing?
- How will the issuance of new shares under the DRP impact PMC’s share price and liquidity post-dividend?
- Will Platinum Capital maintain this dividend and DRP structure in future periods amid changing market conditions?
