L1 Long Short Fund Sets DRP Price at AUD 4.34 Ahead of Dividend Payment
L1 Long Short Fund Limited has updated its dividend notification to include the Dividend Reinvestment Plan price, confirming a fully franked quarterly dividend for shareholders.
- Ordinary fully franked dividend of AUD 0.036 per share for Q4 2025
- Dividend record date set for 3 March 2026, payment on 20 March 2026
- Dividend Reinvestment Plan (DRP) price fixed at AUD 4.34 based on 5-day VWAP
- New shares to be issued under the DRP with no discount applied
- No external approvals required for dividend payment
Dividend Update and DRP Details
L1 Long Short Fund Limited (ASX:LSF) has provided an update to its previous dividend announcement, now including the Dividend Reinvestment Plan (DRP) price. The fund declared an ordinary dividend of AUD 0.036 per fully paid ordinary share, fully franked at the corporate tax rate of 30%, for the quarter ending 31 December 2025.
The record date for shareholders to be eligible for this dividend is 3 March 2026, with the payment scheduled for 20 March 2026. This update follows the initial notification released on 20 February 2026, adding clarity on the DRP pricing mechanism.
DRP Pricing and Participation
The DRP price has been set at AUD 4.34 per share, calculated using a five-day volume weighted average price (VWAP) ending on 6 March 2026. This method ensures the reinvestment price reflects recent market activity, providing a fair basis for shareholders opting to reinvest their dividends into new shares.
Importantly, the DRP will involve the issuance of new shares rather than the transfer of existing ones, which could have implications for the fund’s share capital depending on the level of participation. The plan does not offer a discount on the DRP price, and participation is optional, with the default option being a cash dividend payment for those who do not elect to participate.
Regulatory and Market Implications
No external approvals, such as security holder or regulatory consents, are required for this dividend distribution, streamlining the payment process. The fully franked nature of the dividend is attractive to Australian investors seeking tax-effective income streams, reinforcing L1 Long Short Fund’s commitment to delivering shareholder value.
With the DRP in place, shareholders have the flexibility to compound their investment by acquiring additional shares without brokerage costs, potentially supporting the fund’s capital base and liquidity. However, the actual impact on share price and capital structure will depend on the uptake of the DRP by investors.
Bottom Line?
As L1 Long Short Fund finalises its dividend and DRP details, investor response will be key to gauging the fund’s capital trajectory in the coming months.
Questions in the middle?
- What level of shareholder participation will the DRP attract given no discount is offered?
- How might the issuance of new shares under the DRP affect LSF’s share price and liquidity?
- Will the fully franked dividend policy continue consistently in future quarters?
