WAM Income Maximiser’s Discounted SPP Could Dilute Shareholders if Oversubscribed
WAM Income Maximiser Limited is offering eligible shareholders the chance to buy up to $30,000 in shares at a discount, aiming to raise $48.1 million to fuel growth and support monthly dividends.
- Share Purchase Plan open from 20 Oct to 12 Nov 2025
- Up to $30,000 per shareholder at a 4.6% discount
- Potential capital raise of $48.1 million
- Shares priced at lower of NTA less dividend or 2.5% VWAP discount
- Dividend guidance for Nov and Dec 2025 with monthly fully franked payouts
WAM Income Maximiser Launches Share Purchase Plan
WAM Income Maximiser Limited (ASX, WMX) has announced a Share Purchase Plan (SPP) offering eligible shareholders the opportunity to purchase additional shares up to a value of A$30,000. The plan opens on 20 October 2025 and closes on 12 November 2025, providing a streamlined way for investors to increase their holdings without brokerage fees.
The shares will be issued at a price set at the lower of the company’s net tangible asset (NTA) value per share less the October fully franked dividend, or a 2.5% discount to the five-day volume weighted average price (VWAP) at the issue date on 17 November 2025. This pricing mechanism currently implies a 4.6% discount to the recent closing price, making the offer attractive to shareholders looking to expand their exposure.
Strategic Capital Raising to Support Growth
The SPP aims to raise up to A$48.1 million through the issuance of up to 30 million new shares. The capital raised will be deployed by the investment team into high-quality Australian companies and corporate debt instruments, consistent with the company’s strategy to deliver monthly fully franked dividends alongside capital growth.
Since its IPO, WAM Income Maximiser’s portfolio has delivered an 8.6% increase, with a gross running yield of 4.6% including franking credits. The company is on track to meet or exceed its target income return of the Reserve Bank of Australia (RBA) Cash Rate plus 2.5% per annum, a benchmark that underscores its income-focused investment approach.
Dividend Outlook and Shareholder Benefits
The Board has declared the October 2025 fully franked dividend at 0.30 cents per share, with guidance for November and December dividends at 0.35 and 0.40 cents per share respectively. Including franking credits, these translate to 0.43, 0.50, and 0.57 cents per share, reinforcing the company’s commitment to growing income distributions over its first year of operations.
Beyond the discounted share price, the SPP is designed to enhance liquidity and reduce the fixed expense ratio by increasing the company’s capital base. This should improve market relevance and attract further broker and financial planner interest, benefiting all shareholders.
Participation Details and Conditions
Eligible shareholders with registered addresses in Australia or New Zealand as of 16 October 2025 may participate. The offer excludes shareholders in the United States due to regulatory restrictions. Applications can be made online or via a paper form, with a minimum parcel of A$500 and increments up to A$30,000. The SPP is not underwritten, and the company reserves the right to scale back applications if demand exceeds the maximum raise.
Shareholders are encouraged to review the full terms and conditions and consult financial advisors if needed. The new shares will rank equally with existing shares, including voting and dividend rights, and are expected to commence trading on the ASX shortly after issue.
Bottom Line?
WAM Income Maximiser’s SPP sets the stage for asset growth and dividend expansion, but investors should watch for final pricing and subscription outcomes.
Questions in the middle?
- Will the SPP fully subscribe to the $48.1 million target, or will there be a scale back?
- How will the increased capital base impact the company’s expense ratio and dividend sustainability?
- What market conditions could affect the final issue price and subsequent share performance?