Argo Infrastructure Launches Share Purchase Plan with Up to 5.1% Discount

First SPP Since 2022 Targets Infrastructure Expansion

Argo Global Listed Infrastructure Limited (ASX:ALI) is inviting eligible shareholders to participate in a Share Purchase Plan (SPP) that could see them invest up to $30,000 in new shares at a discounted price. This marks Argo Infrastructure's first SPP since 2022, responding to shareholder interest expressed during recent information meetings held across Australian cities.

Pricing Details and Discount Structure

The SPP price will be the lower of $2.40 per share or the volume-weighted average price (VWAP) over the last five trading days of the offer period (1 to 5 June 2026), rounded down to the nearest cent. The $2.40 cap represents a 5.1% discount to ALI's closing price on the entitlement record date, 18 May 2026, and a 3.8% discount to the VWAP over the preceding five trading days. This pricing structure aims to balance shareholder value with an incentive to participate in the capital raising.

Capital Deployment Plans and Shareholder Impact

Funds raised through the SPP will be directed towards further investments in global listed infrastructure securities, supporting Argo Infrastructure's strategy to expand its portfolio. New shares issued will rank equally with existing shares, maintaining shareholder equality. Eligible shareholders with registered addresses in Australia and New Zealand will receive personalised application forms and terms on 22 May 2026, with the offer closing on 5 June and allotment scheduled for 12 June.

Recent Financial Context and Shareholder Returns

This capital raising effort follows a period of financial volatility for Argo Infrastructure, including a 72% profit drop reported in February 2026 due to unrealised fair value losses, albeit alongside an increased interim dividend payout. The SPP price discount is slightly below the dividend reinvestment plan price set earlier this year at AUD 2.45, reflecting market conditions and investor incentives. The company's ongoing buy-back program and dividend policies, including a fully franked dividend of AUD 0.045 per share declared in March, illustrate a nuanced approach to capital management balancing shareholder returns and growth funding. These developments are part of a broader narrative of managing portfolio growth amid fluctuating market valuations and investor expectations.

Participation Mechanics and Timelines

Shareholders eligible as of 18 May 2026 can apply for any amount up to $30,000 without brokerage fees. The SPP opens on 22 May and closes on 5 June, with new shares to be issued on 12 June. Participation is optional but offers a straightforward opportunity for shareholders to increase their stake at a discount, potentially positioning them to benefit from Argo Infrastructure's ongoing investment activities.