Why Maxiparts Set Its DRP Price at AUD 2.57 Without a Discount
Maxiparts Limited has announced a fully franked ordinary dividend of AUD 0.0312 per share for the half-year ending June 2025, alongside confirmation of its dividend reinvestment plan price at AUD 2.57.
- Ordinary dividend of AUD 0.0312 per share fully franked at 30%
- Dividend record date set for 28 August 2025 with payment on 18 September 2025
- Dividend Reinvestment Plan (DRP) price confirmed at AUD 2.57 with no discount
- DRP shares to be newly issued and rank pari passu from issue date
- No minimum or maximum participation limits in the DRP
Dividend Announcement Overview
Maxiparts Limited (ASX – MXI), a key player in the automotive parts and accessories sector, has confirmed an ordinary dividend payment of AUD 0.0312 per fully paid share for the six months ending 30 June 2025. This dividend is fully franked, reflecting the company’s solid tax position and commitment to returning value to shareholders.
The dividend record date is set for 28 August 2025, with the payment scheduled for 18 September 2025. Shareholders registered by the record date will be eligible to receive the dividend, which is a continuation of Maxiparts’ steady distribution policy.
Dividend Reinvestment Plan Details
Alongside the dividend announcement, Maxiparts has confirmed the price for its Dividend Reinvestment Plan (DRP) at AUD 2.57 per share. The DRP price is calculated as the volume weighted average price of shares traded on the ASX over five trading days starting 1 September 2025, with no discount applied. This approach ensures that reinvested dividends reflect fair market value without preferential pricing.
The DRP will issue new shares to participants, which will rank equally with existing shares from the date of issue. Notably, there are no minimum or maximum limits on participation, allowing shareholders of all sizes to reinvest their dividends fully or partially according to their preference. The default option for shareholders who do not elect to participate is to receive their dividend in cash.
Implications for Shareholders and Market
Maxiparts’ fully franked dividend underscores the company’s ongoing profitability and tax efficiency, which should be reassuring to income-focused investors. The absence of a discount on the DRP price is somewhat unusual in the current market environment, where discounts are often used to incentivize participation. This could signal management’s confidence in the share price or a strategic choice to avoid dilution concerns.
Investors will be watching closely to see the uptake of the DRP and how the market responds post-dividend payment and share issuance. The DRP offers a flexible way for shareholders to compound their investment, potentially supporting share price stability in the coming months.
Bottom Line?
Maxiparts’ dividend and DRP announcement sets a steady course for shareholder returns, but market reaction to the undiscouted DRP price will be telling.
Questions in the middle?
- What level of shareholder participation will the DRP attract without a discount?
- How will the issuance of new shares under the DRP impact Maxiparts’ share price and capital structure?
- Will Maxiparts maintain this dividend policy and DRP pricing strategy in future periods?
