Cedar Woods Properties has activated its Dividend Reinvestment and Bonus Share Plans for the final 2025 dividend, offering shares at a 2.5% discount and backed by full underwriting from major brokers.
- Final fully franked dividend of 19 cents per share payable 31 October 2025
- DRP/BSP issue price set at $7.42, reflecting a 2.5% discount to 8-day VWAP
- Participation optional for shareholders registered by 2 October 2025
- DRP/BSP fully underwritten by Euroz Hartleys, Bell Potter, and Shaw and Partners
- Funds raised to support Cedar Woods’ ongoing acquisition strategy
Dividend Reinvestment Plan Activated
Cedar Woods Properties Limited (ASX, CWP) has officially activated its Dividend Reinvestment Plan (DRP) and Bonus Share Plan (BSP) for the final fully franked dividend of 19 cents per share for the fiscal year ending 30 June 2025. The dividend is scheduled for payment on 31 October 2025, offering shareholders an opportunity to reinvest their dividends into additional shares at a discounted price.
Discounted Share Price and Participation Details
The shares issued under the DRP and BSP will be priced at $7.42 each, representing a 2.5% discount to the volume weighted average price (VWAP) of Cedar Woods shares traded over the eight-day period ending 10 October 2025. This pricing strategy aims to incentivize shareholder participation while maintaining alignment with market valuations. Shareholders registered as of the dividend record date, 2 October 2025, may opt into the plans by 17 October 2025, with elections made online through the company’s share registry.
Full Underwriting Provides Capital Certainty
In a move that underscores confidence in the company’s capital raising efforts, Cedar Woods has secured a fully underwritten agreement for the DRP and BSP shortfall. The underwriting syndicate comprises Euroz Hartleys, Bell Potter, and Shaw and Partners, each responsible for underwriting one-third of any shortfall shares. This arrangement ensures that the company will raise the intended capital regardless of shareholder uptake, providing enhanced balance sheet flexibility.
Strategic Use of Raised Funds
The proceeds from the DRP and BSP, including any shares subscribed by the underwriters, will be directed towards supporting Cedar Woods’ ongoing acquisition strategy. This focus on growth through acquisitions signals the company’s intent to expand its property development footprint and capitalize on market opportunities. Notably, Cedar Woods’ Chair, William Hames, has committed to fully participating in the DRP and BSP for all eligible shares he and his closely related parties hold, reflecting strong insider confidence.
Risks and Conditions of Underwriting
The underwriting agreement includes a comprehensive set of termination conditions covering regulatory actions, market volatility, insolvency events, and material adverse changes to the company’s business or financial position. These safeguards protect the underwriters but also introduce some uncertainty should adverse events occur before the dividend payment date. Investors should monitor any updates related to these conditions as the DRP/BSP participation deadline approaches.
Bottom Line?
Cedar Woods’ fully underwritten DRP at a discounted price not only secures capital for growth but also signals management’s confidence ahead of the final dividend payment.
Questions in the middle?
- What level of shareholder participation will the DRP and BSP ultimately achieve?
- How will the funds raised influence Cedar Woods’ acquisition activity in the near term?
- Could any underwriting termination events materialize amid current market or regulatory conditions?