748,377 New Shares Issued at $1.27 in Fat Prophets’ Latest Capital Raise
Fat Prophets Global Contrarian Fund has successfully closed its Share Purchase Plan, raising nearly $1 million from existing shareholders. The capital injection will see over 740,000 new shares issued at a modest discount.
- Share Purchase Plan raised $950,450
- 59 shareholders participated
- Subscription price set at $1.27 per share
- 748,377 new shares to be issued
- Funds raised to support ongoing investment activities
Successful Capital Raise
Fat Prophets Global Contrarian Fund (ASX, FPC) has announced the completion of its recent Share Purchase Plan (SPP), securing $950,450 in fresh capital from 59 shareholders. The SPP closed on 10 September 2025, with new shares expected to be issued promptly, marking a significant step in the fund's ongoing capital management strategy.
Subscription Price and Share Issuance
The subscription price for the SPP was set at $1.27 per share, calculated as the five-day volume weighted average price (VWAP) leading up to the closing date, less a 2% discount. This pricing approach is designed to offer existing shareholders a modest incentive to participate while maintaining fairness relative to market conditions. As a result, 748,377 new shares will be issued, expanding the fund's equity base.
Shareholder Engagement and Fund Strategy
With 59 shareholders taking part, the SPP reflects a solid level of engagement from the fund's investor base. While the announcement does not specify the intended use of the capital raised, such injections typically support portfolio expansion, liquidity enhancement, or operational flexibility. Given the fund's contrarian investment approach, this capital could enable it to seize undervalued opportunities in global markets.
Market Implications and Outlook
The successful completion of the SPP signals confidence among existing investors in the fund's strategy and management. Chairman Michael Gallagher authorised the release, underscoring the company's commitment to transparent communication. As the new shares are issued, market participants will be watching closely for any updates on how the capital will be deployed and the subsequent impact on fund performance.
Bottom Line?
The fund’s fresh capital injection sets the stage for potential strategic moves, investors will be keen to see how this translates into performance.
Questions in the middle?
- How will the fund deploy the $950K raised through the SPP?
- Will the increased share count affect the fund’s dividend policy or NAV per share?
- Are there plans for further capital raising or strategic initiatives following this SPP?
